UNIT TRUST OF INDIA

SCHEMES AND PLANS

UNIT TRUST OF INDIA
Unit trust of India was created by the UTI act passed by the parliament
in 1963.
For more than two decades it remained the sole vehicle for investment in
the capital market by the Indian citizens.

UNITS
Units as a form of investment are issued by the UTI which is a
public sector financial institution.
The unit capital varies from year to year and depends upon the
subscription
of the investors
 Objectives Of Investing In Units

 Safety

 Growth Of Dividends

 Liquidity
 Different Schemes And Plans

I. Unit scheme 1964

 First to be issued by UTI.

 Face value of Rs.10 and the sale price and re-purchase price
moderately changes every day.

 From June 2002, this scheme was structured according to the Net
Annual Value
II. Re-investment plan 1966

 Investing the annual dividend received on units in further units.

 Applicable to the units under the UTI scheme of 1964 or at a later

date.

 Investors can join this plan at will and can also terminate it at will.

 The re-investment of the annual dividend is done at the lowest July

price .
III. Unit linked insurance plan ,1971

 It provides a life insurance cover and gives a high return as well a tax
rebate.

 It is a contractual plan in which Indian residents not more than 45yrs

of age and below the age of 18yrs can join the plan for 10 or 15 yrs.

 Withdraw from the plan by giving a months notice.

IV. Unit Scheme For Charitable And Religious
Trusts And Registered Societies 1981

 It provides unit scheme for

 charitable trusts,
 religious trusts,
 societies registered under the societies registration act,1860 and
 any state or central govt act or body established for charitable
purposes.
V. Capital Gains Unit Scheme 1983

 It was floated for getting exemption under sec 54(e) (capital gains)
of the IT act of 1961.

I. Any individual
II. Association of person
III. HUF
IV. Charitable trusts
V. Partnership firm
can apply under this scheme.
VI. Income Unit Scheme,1982 And Monthly
Income Unit Scheme 1983

 It is a closed end scheme.

 It is for lower and middle income group of people.

 It is for a period of 5yrs .

 It is for people above the age of 55yrs, handicapped, physically or

mentally retarded and also for widows
VII. Growth and Income unit scheme 1983

 The scheme was open for a period of 5yrs .

 Provides return @10% per annum and capital appreciation after

5yrs.
VIII.India Fund Unit Scheme 1986

 Launched especially for NRI’s.

 Provides opportunity for NRI’s to invest in the securities market in

India.

 It is operated on the principles of a closed end unit trust scheme.

IX. Mutual Fund Unit Scheme (Subsidiary)1986

 It is a growth oriented mutual fund scheme.

 It offers master shares in the Indian securities market and provides

scope for investment to small and medium investors.

 It is a closed ended scheme as the trust does not redeem or re-

purchase the master shares for a period of 7 yrs.
X. Growing Income Unit Scheme 1987

 Provides dividend which increases 12% to 13.5% per annum.

 It is useful for those investors who prefer receiving dividend after

every 6 months.

 It has the optimal advantage of cumulating the amount.

XI. Monthly income unit scheme with extra
bonus plus growth 1987

 This scheme was opened on 1st nov and closed on 31st dec 1987.

 Limited period scheme .

 Attractive for small and medium type of investors.

 The rate of dividend is paid monthly.

 This scheme was re-introduced in 1989 on 1st may 1989 for one
month.
XII. Parents Gift And Growth Fund Unit Scheme
1987

 For the 1st time in India , a scheme was started where the younger
generation could invest for the their parents and elders .

 Individuals, companies and trust can participate in this scheme.

 The face value of a unit is Rs.100 and a minimum of 10units can be

purchased.