The Unit Trust of India was established on 1 February 1964 under the 'UNIT TRUST ACT, 1963' with the aim of mobilizing scattered small savings of the common people in the industries for the economic development of the country. Through this trust, units are saved by selling units to the public and the collected amount is invested in productive works. This investment is done in the shares of companies and letters of credit. Net profit earned from the investment is distributed to the unitholder. This act of appropriation on the basis of profitability, while protecting the wealth of the general public, on one hand, seeks to provide adequate returns to it. It also provides support in financing of other industrial establishments. This trust is authorized to acquire capital by selling Units in addition to its initial capital. This type of capital is called 'Unit Capital'.
In our country, UTI has developed a trend of saving in the general public by encouraging savings, especially salaried employees who have got the opportunity of safe investment through UTI. The main features of UTI are - UTI, 1964, 1971, 1976 for Non-Resident Indians India Fund 86, ULIP, India Growth Fund 1989, Mutual Funda Master Gain, etc.
It is noteworthy that after the collapse of the scheme named 'U.S-64' in 2001, UTI split into two separate companies-
First-UTI I-UTI-AMC ie Asset Management Company
(Asset Management Company)
II-UTI II-UTI-NAV means 'pure'
The company is called 'Net Asset Value'. UTI in the second company Asset Value of Net Asset Assets is operated by LIC, SBI, PNB and Bank of Baroda. All four have placed all UTI-value based schemes by paying full value to the government and have managed to own and manage the AMC [UTI-Mutual Fund) as well. In November 2005, these banks and LIC paid 1236.95 crores to the Government of India. As a result, SBI, PNB, LIC and BOB got the right to co-own 25 to 25 percent.
The main objectives of the Unit Trust of India (UTI) are:
(i) Depositing money from the public as savings.
(ii) To take measures to increase national capital by selling shares to small investors.
(iii) To invest money in various industries in such a way that the industry is strengthened and has a good opportunity of appropriation.