The Unit Trust of India is not worthy of our trust any longer. Hence it should be disbanded immediately. Today the hue and cry is about US-64, and every one including Mr Yashwant Sinha has woken up. But the fact is: UTI as a company has been doing badly by the market for several years now. Also, this is not the first time the results of their poor performance has affected the ordinary man.
Some months ago they reduced the interest rates of their Mastergain and other schemes from over 10 per cent to just five percent. That is slightly higher than the Savings Bank accounts in the Banks. Then why should we block our money in UTI?
Later, in almost total secrecy, they discontinued the highly popular Children’s Gift Growth Fund (CGGF 1986), but are holding on to the money. Now thousands of young children risk being pushed to the brink of poverty and they don’t even know it!
Finally, we come to US-64. Though millions of middle class salaried investors had put their money in US-64, the scheme got its biggest subscriptions from large corporate houses which could enter and exit at will. These large business houses took full advantage of the fixed price dealings of the scheme and made crores of rupees in the process.
There are other problems, too. As a consequence, we may have lost all our money!