ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

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Unit Trust of India

EPW Research Foundation Unit Trust of India SET UP in 1964, Unit Trust of India (UTI) was conceived of as an institution to channel the savings of the small investor into industrial development. Over the years UTI has evolved into an institution of some 4.80 crore unit-holders, managing investible funds of the order of Rs 61,000 crore. UTI has an 80 per cent share of the funds management industry. The initial capital of Rs 5 crore, subscribed to by the RBI, other financial institutions, LIC SBI and its subsidiaries and other scheduled banks, including a few foreign banks, served as a base portfolio with the help of which the UTI could launch the Unit Scheme 1964 (US-64). Later in 1976, RBFs contribution was taken over by IDBI. Children's Gift Growth Fund, an open- ended scheme, was launched in 1986 to provide for investment for the security of children. The scheme provides an assured return of 14 per cent Mastershare, a close- ended growth fund, also launched in 1986, has given investors an annualised return of 36 per cent since inception. The Fund has paid regular dividends for the last nine years, made two rights issues and three bonus issues. The UTI has also pioneered offshore funds. India Fund and India Growth Fund were punched in 1986 and 1988. UTI joined hands with other financial institutions and established the Infrastructure Leasing and Financial Services to fund large infrastructure projects. The UTI has many other firsts to its credit, such as CRISIL, the first credit rating agency (1987), the Stock Holding Corporation of India (1987),the Technology Development Corporation of India (TDCI) and the country's first venture capital management institution (1986). UTI Investment Advisory Services (UTI-IAS), set up in 1988, supplements the equity research done bye UTI. UTI-IAS is registered with the Securities Exchange Commission, USA, and is advisor to the India Growth Fund listed in New York. The UTI Institute of Capital Markets (1989) was set to facilitate training and research in areas related to the capital market. UTI currently offers 58 different schemes, most of them launched to benefit specific categories of investors, such as the Rajlakshmi Unit Scheme, Senior Citizens Unit Plan, Grihalakshmi Unit Plan, Retirement Benefit Plan, Children's College and Career Fund, Rhopal Gas Victims Monthly Income Plan, Growing Corpus Growing Income Plan and Deferred Income Unit Plan. In 1994, as part of its diversification programme, the UTI promoted a private sector bank, the UTI Bank. The bank has branches in Bombay, Calcutta, New Delhi, Hyderabad and Bangalore. UTI Investors Services Limited (UTI-ISL) (1993) was set up to provide quality registrar services. UTI Securities Exchange Limited (UTI-SEL) was set to provide broking services. UTI-SEL also plans to actively participate in underwriting activities and in the debt markets. It also plans to set up subsidiaries for activities like credit rating, investment banking, information services, financial product marketing, fund accounting, etc. UTI is currently implementing a technology upgradation programme which involves online computerisation of operations and networking offices through telecommunications for providing prompt service to investors. UTI has 44 per cent of its investible funds in equity. It holds stakes in more than 1,000 Indian companies and accounts for over 10 per cent of the market capitalisation of all listed scrips on the BSE. Thirty-three percent of the UTI's investible funds have been invested in debt instruments. Its debt market operations cover a range of instruments including publicly issued and privately placed debentures, bonds and medium-term notes. About 23 per cent of UTI's total investible funds are accounted for by government paper and call deposits, bill rediscounting and commercial paper As in past years, UTI is offering units under its US-64 scheme at a special price of Rs 15.50 in July; the offer is open from July 1 to July 15.

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