Fund set up for ring (4)

I believe the answer is:

loop

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'for ring' is the definition.
(I've seen this before)

I don't understand how the rest of the clue works.

(Other definitions for loop that I've seen before include "I cross myself" , "Complete circuit; encircle" , "Shape formed by a closed curve that does not intersect itself" , "Aerobatics manoeuvre" , "Oval or U-shaped coil or bend" .)

I've seen this clue in The Telegraph.

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