Endowment Fund

An endowment fund is a large pool of money, often held by universities, charities, or institutions, intended to support their ongoing operations and goals. The fund is invested, and the returns—such as interest and dividends—are used to fund programs, scholarships, or projects. The primary principle is preserved so that the fund can generate income indefinitely, ensuring long-term stability. Essentially, it's a financial reserve that helps organizations sustain their missions over time, balancing investment growth with consistent support for their activities.