UGC NET COMMERCE July 2018 Q61
0. Which one of the following is not the objective of UTI?
- A
To mobilise savings of the community by offering savers the triple benefits of safety, liquidity and profitability of Investments.
- B
To channelise the pooled savings into productive outlets.
- C
To provide finance under hire purchase finance and housing finance to its members.
- D
To give every one a chance to indirectly own shares and securities in a large number of select companies.
- Option : C
- Explanation : The Unit Trust of India, which was established on February 1, 1964 under the Unit Trust of India Act, 1963 in the public sector, is another organised investment institution in this country.
Objectives of UTI: The primary objective of the UTI is to encourage and mobilise savings of the community and channelise them into productive corporate investments so as to promote the growth and diversification of country’s economy. To the achievement of this objective, it is selling ‘units’ of small denomination of Rs.10 to the general public. The savings so mobilised are then invested by it in the shares and debentures of industrial companies, and in bonds of Public Corporation and Government Securities. The temporary surplus funds are placed by it with banks in call loans.
