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DIFFERNCE BETWEEN RESERVE AND FUND?

Answer Posted / Prateek Keshari

Reserve and Fund are two different financial terms. A Reserve is a set aside amount of money kept for specific purposes, such as Contingency Reserves (for unforeseen expenses), Debt Service Reserves (to cover future interest payments), or Capital Reserves (to maintain the company's capital). A Fund, on the other hand, is a collective investment vehicle that pools money from various investors to invest in a diversified portfolio of assets.

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