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June 24th, 2016, 03:46 PM
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Importance of Unit Trust Of India
What is the Importance /Functions of Unit Trust Of India (UTI)? Also tell about the Advantages of Unit Trust of India? Unit Trust of India (UTI) was established with an initial capital of Rs. 5 crore. UTI is managed by a Board of Trustees. Importance /Functions of Unit Trust Of India: To sell units to investors in different parts of the country. To encourage savings of lower and middle-class people. To provide merchant banking and investment advisory service. To give them an opportunity to share the benefits and fruits of industrialization in the country. To covert the small savings into industrial finance. To provide liquidity to units. To buy or sell or deal in foreign exchange dealings. To invest in any security floated by the Central Government, RBI or foreign bank. Advantages of Unit Trust : Investment is safe . Risk is spread over a wide range of securities. Unit-holders will be getting regular and good income. Dividends up to Rs. 1,000 received by the individual are exempt from income-tax. High degree of liquidity of investment Last edited by Neelurk; February 21st, 2020 at 04:02 PM. |
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