The Hindu : Business : Return to stock market, says Chidambaram

Online edition of India's National Newspaper
Wednesday, Sep 15, 2004

Business

Business

Return to stock market, says Chidambaram

By Our Special Correspondent

NEW DELHI, SEPT. 14. The Union Finance Minister, P. Chidambaram, today urged retail investors to give up their apprehensions about the capital market and return to the stock exchanges through the mutual fund route.

Participating at a function organised here on the occasion of the Department of Posts (DOP) joined hands with the Unit Trust of India (UTI) in distributing various mutual fund schemes of UTI through 50 post offices located across the country, Mr. Chidambaram said the Indian capital market had a roller coaster ride in the last decade with scams hurting investors more than rewarding them. "But as regulations become stronger, I hope confidence in the capital markets would be restored. Savers must become retail investors and what can be a better way than doing it through the mutual funds. These funds give a better return than bank fixed deposits or savings accounts,'' he said.

Innovative practices

The Minister pointed out that the UTI had redesigned itself and was today the largest mutual fund handling over Rs. 20,000 crores. It had added 1.5 million investors in the last year alone and was the largest mutual fund in terms of equity investments. Lauding innovative practices such as the UTI tie up with India Post, he said the DOP should also grow and gave the example of the world's second largest courier company, DHL, which is owned by the German Department of Post.

Speaking on the occasion, the Telecommunications and Information Technology Minister, Dayanidhi Maran, said the Department of Posts could effectively handle mutual fund matters throughout the country with the strength of its unique position to provide financial retail network. He said the present network of 50 post offices would be expanded in due course, wherever it was felt commercially viable. To begin with, the DOP has launched five schemes of UTI, namely, UTI Mastershare Unit Scheme, UTI Unit Linked Insurance Plan, UTI Children's career Plan, UTI Mahila Unit Scheme and UTI Variable Investment Scheme.

UTI, India Post tie up

To give effect to the tie-up, an agreement was signed between India Post and UTI Mutual Fund by Vijay Bhushan, Secretary, Department of Posts, and M. Damodaran, Chairman and Managing Director, UTI.

The five schemes will be introduced in select post offices spread over in 17 postal circles of Andhra Pradesh, Bihar, Chhatisagarh, Delhi, Gujarat, Himachal Pradesh, Jharkhand, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Punjab, Rajasthan, Tamil Nadu, Uttar Pradesh, Uttaranchal and West Bengal.

Printer friendly page
Send this article to Friends by E-Mail

Business