What exactly is a pension fund? & why would it invest in a high risk investment like venture capital fund?
1 Answer(s)
Binny
In India the more common name for a Pension Fund is PF.
Every month a specific amount is deducted from your salary and invested into various equities, debt etc. When you retire the amount you get back depends on how well these investments have done.
A pension fund manages all this money which is the pensions of millions of people.
In the United States, many pensions funds allocate a small % of their portfolio (less than 10%) to high risk Vc/PE like investments in the hope of making an outsized return.
Aug 19 2013 05:10 PM
Every month a specific amount is deducted from your salary and invested into various equities, debt etc. When you retire the amount you get back depends on how well these investments have done.
A pension fund manages all this money which is the pensions of millions of people.
In the United States, many pensions funds allocate a small % of their portfolio (less than 10%) to high risk Vc/PE like investments in the hope of making an outsized return.