IIT-Delhi Endowment Fund: 1 billion USD
IIT Delhi will announce its Endowment Fund on October 31, 2019 ahead of its Golden Jubilee Convocation ceremony. The aim is to collect funds from the alumni, bankers and industrialists. The institute has set its target as 1 billion USD.
The Endowment funds are big source of income for top global universities. For instance, the endowment funds of Harvard and Stanford are over 39 billion USD and 27 billion USD respectively
The Endowment Fund is an investment fund established by an organization. There are three main types of Endowment Funds.
- Investment Policy-Here, there are constraints for investors. The investor is dictated on making his investments.
- Withdrawal Policy-a piece of the fund is established for the institution and it is allowed to withdraw a fixed amount at periods of installment.
- Usage Policy-the purpose of usage of funds are defined. The usage of the funds should be appropriate and adhere to the purposes.
Working of University Endowment Funds
The Endowments are designed in such a way that the principals are to be kept in tact while using the investment income for charitable efforts. Universities are allowed to use the rest of the amount as standard income. This helps to lower tuition costs for students.
Category: Economy & Banking Current Affairs