The Full form of UTI is Unit Trust of India is a government-monitored public sector investment organization with millions of active users across the country. To date, the organization has been carrying through its reputation as one of the most reliable investment organizations in India. This article will explain everything about the features and functions of UTI.
The Origin of UTI
Unit Trust of India can be considered the execution of the Unit Trust of India Act which was enforced in 1963. However, the official journey of UTI started in the following year, 1964. The organization began its operational process in 1964 as a friendly investment institution for small investors.
From its initial days, the basic objective of UTI has been the same, helping out small investors in making smart investments with lesser risk factors. The organization’s reliability was the reason behind its success in overlapping contemporary financial organizations and investment institutions.
The Organization of UTI
UTI started its journey to become one of the most convenient investment organizations with a capital of 5 crore INR. The organization was funded by RBI, SBI, LIC, and many other financial organizations and scheduled banks.
The beginning capital of the organization got divided into 1000 official certificates, priced at 50000 INR each. This was planned to eliminate the risk factors related to the success of the financial institution in its initial days. However, UTI turned into a gigantic and trustworthy investment company soon after its establishment and it never had to look back.
At present, the government-backed organization is carrying a glorious service history of 56 years. The organizational structure of UTI never went through noticeable changes and the organization prefers to stick to its standard structure.
The management procedures of UTI are supervised by a Board of Trustees. UTI’s Board of Trustees includes a total of 9 members. 5 among them, including the Chairman of the Board, get nominated by RBI. One of the other members gets elected by SBI, one gets nominated by LIC and the rest two represent other funding contributors.
UTI is authorized to borrow financial resources directly from RBI whenever required. However, the organization is supposed to repay the borrowed amount within the following 18 months according to the regulations of the RBI. Anyway, RBI can insist the organization repaying the amount before the timeline mentioned above during special demands and requirements.
What are the basic objectives of UTI?
Like every other financial organization, UTI comes with some basic objectives that the organization attempts to accomplish. Check out the following points to understand the main objectives of UTI as an organization.
- UTI targets middle-class and lower-class earning individuals and encourages them to invest their money in safe mutual funds to multiply their resources.
- UTI has a great contribution to utilizing the financial gains of individuals for the utmost growth of the country. In other words, UTI plays a big role in strengthening the Indian economy.
The existence of UTI makes investment easier for individuals with limited earning potentials.
The primary functions of UTI
- UTI actively takes part in all types of forex transactions and all the forex transactions made in India are monitored and supervised by UTI.
- UTI is a crucial factor behind loan sanctions and advances. With UTI, it’s easier to get loans approved, and UTI assists in all other loan-related activities.
- Lease granting is a vital task of UTI as an organization and the company has been doing that decently over the years.
- The organization is well-recognized for offering effective merchant banking and investment advisory consultations.
- UTI has been proactive in investing in government-aided investment schemes since its initial days.
These are the fundamental functions that UTI keeps performing on a regular basis. However, there are many more activities that are done by the organization.
Why are UTI schemes safer than other investment schemes in the market?
- Firstly, you get the assurance of a government-affiliated investment organization like UTI by invest in its schemes. The security of your investment doesn’t remain a point of concern anymore.
- With UTI, investors and unitholders stand chances to ensure stable earnings throughout the year.
These are the reasons why you should prefer the investment schemes offered by UTI over other investment schemes in the market.
All the Full forms of UTI in numerous fields
|UTI||Unit Trust of India||Banking|
|UTI||Universal Technical Institute||Business|
|UTI||Uniform Type Identifier||Computing|
|UTI||Unique Transaction Identifier||Business|
|UTI||Ultrasound Tongue Imaging||Technology|