being used to take advantage of new opportunities that could benefit the local economy.
The money used for the fund would be sourced from revenue earmarked to pay off part of the council’s £200m debt.
This debt has accrued as a result of borrowing for major projects such as roads and school.
A council spokesperson said it was more economical for the council to invest this cash in schemes with the potential to offer a better return.
City mayor Peter Soulsby said: "It is vital that we look at every opportunity to make our cash balances work as hard as possible for good returns and the economic benefit of the city.
“This is money that is currently sitting in low interest bank accounts as security against borrowing from the government to pay for major infrastructure projects.
“Like many other councils, we are now looking at ways that these cash balances can be used to generate a better return and to support local economic growth and prosperity.”
A formal decision on the fund is due to take place on Monday 27th February.
Last year, a separate £20m investment fund was launched to offer loans of up to £4m to businesses and developers looking to invest in the city.