Sinking Fund
Definition
A fund created by setting aside a fixed amount of money periodically and investing it, specifically to repay a long-term debt (like debentures) or replace a fixed asset at the end of its life.
Example
"A company issuing ₹10 Lakh debentures redeemable in 5 years creates a Sinking Fund by investing ₹1.6 Lakhs annually so that the investment grows to ₹10 Lakhs."