Unit trust of india

This is a presentation on the Unit Trust of India which forms a big part of our Economy.

1. UNIT TRUST OF INDIA Established 1 st Feb, 1964 by Unit Trust of India Act, 1963 passed by the Government of India.

2. Functions of UTI (Unit Trust of India) Mobilize the saving of the relatively small investors. Channelize these small savings into productive investments. Distribute the large scale economies among small income groups. Encourage savings of lower and middle-class people. Sell bits to investors in different parts of the country. Convert the small savings into industrial finance. To give investors an opportunity to share the benefits and fruits of industrialization in the country. Provide liquidity to units.

3. Accept discount, purchase or sell bills of exchange, warehouse receipt, documents of title to goods etc., To grant loans and advances to investors. To provide merchant banking and investment advisory service to investors. Provide leasing and hire purchase business. To extend portfolio management service to persons residing in other countries. To buy or sell or deal in foreign currency. Formulate a unit scheme or insurance plan in association with GIC. Invest in any security floated by the RBI or foreign bank.

4. Objectives of UTI To promote and pool the savings from small investors. To give them opportunity to share the benefits and prosperity of the industrial development in the country.

5. Organization and Management UTI was established with an initial capital of Rs. 5 crore , contributed by the RBI, LIC, SBI and its subsidiaries and scheduled banks and financial institutions. The initial capital of Rs. 5 crore was divided into 1,000 certificates of Rs. 50,000 each. To supplement its financial resources, the trust can borrow from the Reserve Bank of India, the amount being repayable on demand’ or within a period of 18 months. UTI is managed by a Board of Trustees, consisting of a chairman and four members nominated by Reserve Bank of India, one member nominated by LIC, one member nominated by the State Bank of India, and two members elected by the contributing institutions .

6. Schemes of UTI Unit Scheme- 1964 Unit Linked Insurance Plan- 1971 Children Gift Growth Fund Unit Scheme- 1986 Rajyalaksmi Unit Scheme- 1992 Senior Citizen’s Unit Plan- 1993 Monthly Income Unit Scheme Master Equity Plan-1995 Money Market Mutual Fund- 1997 UTI Growth Sector Fund- 1999 UTI Unit Linked Assurance Plan

7. Structure of UTI UTI represents a unique organization without ownership capital and an independent board of trustees. Under the provision of first UTI schemes, US-64, certain institutions contributed in the initial capital of UTI. Under the provision of the act, there has to be a chairman of Board of UTI appointed by the Government of India who performs its functions based on commercial principle.

8. Role of UTI in Industrial Finance UTI have relied extensively on intermediaries to market their schemes to investors. With the help of UTI, recently banking finances, secondary market brokers, and even post offices have also begun to market mutual funds to their existing and potential client basis

9. Thank You Presentation by- Vidisha Jangid