- Daughter fund is created to park allocation from Fund of funds.
- Daughter fund is one of the types of venture fund.
- Daughter fund invest funds in start-ups.
- Daughter Fund is a FUND OF FUNDS that works with VENTURE CAPITALISTS to create funds.
- “Fund of Funds” collect money to invest in “daughter funds”. : Daughter funds” collect money partly from “fund of funds” and partly from public and invest in start-ups/ MSMEs etc.
- Fund of funds (FOF)is a pooled investment fund that invests in other types of funds. FOFs usually invest in other mutual funds or hedge funds.
In recent news:
As per proposal announced by Govt of India in the view of COVID-19 pandemic, there is a proposal to infuse equity into MSMEs through a Fund of funds system where the government will provide ₹10,000 crore as initial corpus of the Fund.
This will raise ₹50,000 crore which will be used to support MSMEs in desperate need of equity through ‘daughter funds’ of the main Fund of funds.
The aim is to expand size and capacity of the MSMEs with equity and help them get listed on the stock exchanges.