Unit Trust of India or UTI

Unit Trust of India or UTI A public trust for the collective purchase or shares and other money market instruments on behalf of its unit holders. Being a trust and accountable to the government, the UTI has to follow a very judicious investment policy, spreading its investment risk over a larger portfolio. Managed by investment specialists the Trust has succeeded in ensuring an adequate dividend for its participants. Safety being its prime consideration, the Trust has been conservative in its approach; a steady income rather than spectacular price appreciation ahs characterized its investment policy.

The unit scheme is an open – ended scheme, i.e. anyone can buy into it at a publicly announced price, and units can be sold back only to the Trust at its publicly declared buying price. The Trust has several kinds of schemes.

Owing to the very large funds at its disposal, with more than Rs. 54,000 crore investible funds in 1993 – 94, the Trust is a major player in the stock market. It is also one of its mandates to intervene in the stock market when there are conditions of a collapse.

The first scheme of the Trust started in 1964.

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