Unit Trust of India: Meaning, Functions

UTI  (Unit trust of India)

The unit trust of India(UTI) was established on 1^st February 1964 under the ‘’Unit Trust of India Act, 1963’’ by the government of India.

• UTI set up on 26th Nov 1963 after an act passed in 1962.

• It was effective from 1st July 1964.

• The objective of UTI is to mobilize the small savings of the people for their suitable and profitable investment.

• UTI are open-end investment as they sell their shares units continuously in order to raise additional capital. Redeem their shares (repurchase) to ensure high liquidity.

• UTI 1  has been named as the administrator of the specified undertakings of the unit trust of India (private).

• UTI 2 SBI, PNB, BOB, LIC set up. (Public) UTI mutual fund, UTI Trustee Company, UTI Asset Management Company.

• The government signed an agreement on 15 Jan 2003 for the transfer of undertakings.

• 1st Feb 2003 was appointment day and bifurcation of UTI 1 a UTI 2.

• UTI abolish Raj Laxmi unit plan 2 which came in 1992 for girls' benefit on 1st Oct 2000.

• On 31st May 2003 US-64 came to an end.

• On 31st July 2007 UTI was renamed as AXIS bank.

• UTI mutual fund join hands with Sri Mahila SEWA Sahkari scheme to unorganized women workers through UTI retirement benefit pension fund.

• UTI has launched a pension scheme for the extremely poor among the Indian workers for a minimum contribution of Rs. 50 women working with SEWA (Self -employed women association)

Function

                                              

• To encourage savings of lower and middle-class people.

• To sell units to investors in different parts of the country.

• To convert the small savings into industrial finance.

• To provide liquidity to units.

• To provide merchant banking and investment advisory service.

• To formulate a unit scheme or insurance plans.