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Old August 2nd, 2017, 01:38 PM
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Default Notes on Unit Trust of India

I have to make a project on Unit Trust of India. So I am looking for important notes. So can anybody provide important notes for Unit Trust of India?
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Old August 2nd, 2017, 02:22 PM
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Default Re: Notes on Unit Trust of India

As you are looking for important notes on Unit Trust of India, so I am providing notes:


Unit Trust of India: Objectives, Functions and Schemes

Unit Trust of India (UTI) is a statutory public sector investment institution which was set up in February 1964 under the Unit Trust of India Act, 1963.

UTI began operations in July 1964. It provides opportunity for small-savers to invest in areas where their risk is diversified.

The primary objectives of the UTI are:
(i) To encourage and pool the savings of the middle and low income groups.

(ii) To enable them to share the benefits and prosperity of the industrial development in the country.

Organisation 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.

Functions of UTI:
The UTI functions are discussed below:
To accept discount, purchase or sell bills of exchange, promissory note, bill of lading, warehouse receipt, documents of title to goods etc.,

To grant loans and advances.

To provide merchant banking and investment advisory service.

To provide leasing and hire purchase business.

To extend portfolio management service to persons residing outside India.

To buy or sell or deal in foreign exchange dealings.

To formulate unit scheme or insurance plan in association with or as agent of GIC.

To invest in any security floated by the Central Government, RBI or foreign bank.

Schemes of UTI:
The familiar schemes of UTI are given below:

Unit scheme—1964.
Rajyalakhmi Unit Scheme—1992.
Monthly Income Unit Scheme.
Growth and Income Unit Schemes.
Children Gift Growth Fund Unit Scheme—1986.
Senior Citizen’s Unit Plan—1993.
Master Equity Plan—1995.
UTI Growth Sector Fund—1999.
Money Market Mutual Fund—1997.
Unit Linked Insurance Plan—1971.

Advantages of Unit Trust:
(i) The investment is safe and the risk is spread over a wide range of securities.

(ii) The Unit-holders will be getting regular and good income, as 90 percent of its income will be distributed.

(iii) Dividends up to Rs. 1,000 received by the individual are exempt from income-tax.

(iv) There is a high degree of liquidity of investment as the units can be sold back to the trust at any time at prices fixed by trust.
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