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

1. UNIT
TRUST
OF INDIA
Established 1st 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