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05 September 2010 what are the difference venture capital fund and mutual fund .

Thrissurkkaran Ishtan

Thrissurkkaran Ishtan (Expert)
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07 September 2010 Venture Capital Fund is someone who provides capital to companies (with great and big ideas) looking for higher return than other available options. So let us say you (or anyone or any company) have a great idea about a product that has an enormous profitable opportunity. You can approach a Venture Capital Fund to finance your project. They finance "ventures". They may be getting the money from people who are willing to invest in them expecting similar (higher) returns.

Mutual Fund on the other hand is an investment tool available to you to park your funds according to the various investment philosophies. Let us say you have 1 lac rupees in hand and you want to invest in Equity Mutual Fund (who will place your money in shares) or Debt Mutual Fund (who will place your funds in debt securities). Mutual Fund will give you what they get out of investment.

Looking from an investment point of view, both Mutual Fund and Venture capital Fund gives you what they get out of investing from your funds (after certain commission)