Q10 · UPSC current affairs · 7 October 2026 · PIB · SME Growth Fund MSME Equity Capital

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What is the primary objective of 'Risk Capital' investments in the context of growing enterprises?

A Providing guaranteed fixed-income government bonds to risk-averse retail depositors.
B Subsidized insurance covers for international shipping cargo.
C Short-term micro-loans disbursed by cooperative banks for agricultural seed purchase.
D Funds invested in high-growth enterprises carrying high exposure to capital loss in exchange for equity.

Correct answer: (d) Funds invested in high-growth enterprises carrying high exposure to capital loss in exchange for equity.

Explanation

Option D is correct because risk capital involves funds invested in high-growth enterprises carrying high exposure to capital loss in exchange for equity. Options A, C, and D describe entirely different financial instruments.

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