Source Of Fund Available

INTRODUCTION

A "fund of funds" (FOF) is an investment strategy of holding a portfolio of other investment funds rather than investing directly in stocks, bonds or other securities. This type of investing is often referred to as multi-manager investment. A fund of funds may be 'fettered', meaning that it invests only in funds managed by the same investment company, or 'unfettered', meaning that it can invest in external funds.

There are different types of 'fund of funds', each investing in a different type of collective investment scheme (typically one type per FoF), for example 'mutual fund' FoF, hedge fund FoF, private equity FoF or investment trust FoF but the original Fund of Funds was created by Bernie Cornfield in 1962. It went bankrupt after being looted by Robert Ves.

SOURCES OF BUSINESS FINANCING

Where and how you finance an operation can be the difference between dominance and failure. All money may sound like good money in this environment. It isn’t. 

Often it makes the most sense to tap a few different sources of capital. One deal I arranged involved seven funding sources. That sounds like a hassle, but it ended up greatly reducing the company’s cost of capital and saving it from bankruptcy. 

Here are the 12 best, from least attractive to most. Two glaring omissions: venture capital–VCs fund just 3,500 of the 22 million small outfits in the U.S., and they only tend to hunt for companies with the potential for torrential growth–and a founder’s own savings. If you don’t know by now that financiers want to see some of your own skin in the game, you may already be in over your head.

Banks want assurance of repayment by requiring personal guarantees and even a secured interest (such as a mortgage) on personal assets. Unlike other financing relationships, banks offer some flexibility: You can pay off your loan early and terminate the agreement. VCs and other institutional investors may not be so amenable.