Tolani Commerce College: Course Banking For Business Process Services

TOLANI COMMERCE COLLEGE
COURSE
Banking for Business Process Services
PROJECT REPORT
ON
UNIT TRUST OF INDIA
Submitted by:-
NAME: Harshit M Parmar
ROLL NUMBER: 36
A Brief Background
Unit Trust of India (UTI) is a statutory private sector investment body. It
was set up on February 1, 1964 as per the Unit Trust of India Act of
1963. The primary objective of setting up this institution was to channel
corporate investments through encouraging productive community
savings. Therefore, it allows small-time savers to invest in risk-diverse
fields.
People who hold units under this can sell them to UTI at a given rate as
well. A very particular reason why this is an attractive investment
option is because the investment in UTI has a certain rebate on income
tax. Moreover, the income from UTI is also exempted from income tax
as per certain conditions.
Meaning of Unit Trust of India

Unit Trust is an investment plan where the funds are pooled together
and then the investment. The fund that has been pooled is later
unitized. The investor is known as a unitholder. He or she holds a
certain number of units.On the other hand, the second party which is
the manager is responsible for the daily running of the trust and for
investing the funds.
The trustee, governed by the Trust Companies act in the year 1967, is
the third party. The role of the third party is to monitor the manager’s
performance against the trust’s deed. The purpose of the deed is to
outline the objectives and the vital information about the trust. Also,
the assets of the trust are held in the name of the trustee. Then they
are held “in trust” for unitholders.
Our Vision
To be the most preferred Mutual Fund
Our Mission
• The most trusted and admired brand for all stakeholders

• The most efficient wealth manager with a global presence
• Deliver best-in-class customer service
• The most preferred employers
• Create innovative products that maximize ROI
• Socially responsible corporation that focus on well-being
of all
Logo
The primary objectives of the UTI are:
(i) To encourage and pool the savings of the middle and low income
groups.
(ii) To enable them to share the benefits and prosperity of the industrial
development in the country.
Organisation 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.
Functions of UTI:
The UTI functions are discussed below:
(i) To accept discount, purchase or sell bills of exchange, promissory
note, bill of lading, warehouse receipt, documents of title to goods etc.,
(ii) To grant loans and advances.
(iii) To provide merchant banking and investment advisory service.
(iv) To provide leasing and hire purchase business.
(v) To extend portfolio management service to persons residing outside
India.
(vi) To buy or sell or deal in foreign exchange dealings.
(vii) To formulate unit scheme or insurance plan in association with or as
agent of GIC.
(viii) To invest in any security floated by the Central Government, RBI or
foreign bank.
Best UTI Mutual Fund Schemes as per 2021
3-year 5-year
Fund Name
Returns(%) Returns(%)
UTI Liquid Cash

6.15% 6.53%
Fund
UTI Nifty Index

5.64% 8.89%
Fund
UTI Equity Fund 7.52% 9.24%
UTI Mastershare
4.05% 6.80%
Fund
UTI Hybrid Equity

0.88% 3.88%
Fund
UTI Asset Management Company Ltd. (UTI AMC)
It was incorporated on November 14, 2002 and commenced operations
from February 1, 2003. UTI AMC has been promoted by four sponsors,
namely, State Bank of India, Life Insurance Corporation of India, Bank of
Baroda and Punjab National Bank and each of them hold 25% of the
paid up capital of UTI AMC. UTI AMC was converted from a private
limited company to a limited company with effect from November 14,
2007.
On January 20, 2010 T.Rowe Price Group Inc. through its wholly owned
subsidiary T. Rowe Price Global Investment Services Ltd. U.K.(TRP)
acquired 26% stake in UTIAMC after obtaining all the requisite
approvals from the Government of India, SEBI and the RBI. Directors
representing TRP have been inducted on UTIAMC board. This ensures
an effective amalgam of global technological expertise and the long
experience with Indian capital markets.
UTI AMC is the investment manager to the schemes of UTI Mutual
Fund. It also manages offshore funds and provides support to the
Specified Undertaking of the Unit Trust of India.
UTI Retirement Benefit Pension Scheme

UTI Retirement Benefit Pension Fund is a solution-oriented
mutual fund scheme that focuses on retirement planning. The
fund was launched in December 1994.
The scheme aims to create a healthy retirement corpus with a
mix of debt and equity securities. For equity allocation, the
fund remains biased to large caps (minimum of 50%
exposure), remaining invested in midcap and small caps with
an aim to generate long-term wealth.
Management Structure of UTI

When this body was organized, it began operating with an opening
capital of 5 crore rupees. This was contributed by various other
institutions such as the Reserve Bank of India (RBI), State Bank of India
(SBI), Life Insurance Corporation of India (LIC) and so on. The UTI can
borrow from the RBI in case it needs more financial resources, as long
as it can repay the amount within a period of 18 months.
The management of the UTI is overseen by a board of Trustees. This
board consists of a chairman and four nominees appointed by the RBI,
one by the SBI, one by LIC and two nominees appointed by the
constituent institutions.

Tolani Commerce College: Course Banking For Business Process Services

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TOLANI COMMERCE COLLEGE

Meaning of Unit Trust of India

To be the most preferred Mutual Fund

• The most trusted and admired brand for all stakeholders

Best UTI Mutual Fund Schemes as per 2021

UTI Liquid Cash

UTI Nifty Index

UTI Equity Fund 7.52% 9.24%

UTI Hybrid Equity

UTI Retirement Benefit Pension Scheme

Management Structure of UTI

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