Insurance Providers Given Green Light To Invest In Indian Startups Via Fund Of Funds
India, April 10 -- The Insurance Regulatory and Development Authority of India (IRDAI) has tweaked its policy allowing insurance companies to invest in alternative investment funds (AIF) which are classified as fund of funds (FoF), according to a notification on April 05.
The startup ecosystem has welcomed this move by the IRDAI as the FoF remains a critical funding source for startups. A "fund of funds" 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.
This notification was an update to a 2016 policy which stated that insurers can invest in Category I and II AIF (within S...
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