Good Move, Modalities Key Now

Is the Unit Trust of India bailout on the ball? Is it beneficial to its millions of investors?

Krishnamurthy vijayan

CEO, J M Mutual Fund

While academics have criticised the Unit Trust of India (UTI) bailout package as being a burden on the taxpayer, I think it is perhaps a worthwhile investment made in the financial infrastructure by the government.

The financial infrastructure of a country determines the confidence of its savers, and this would have been damaged badly if the UTI were to go under for want of government support.

The ones who need succour are the people who trusted the UTI with their hard-earned money, those who are fighting the battle today to salvage it. And the stock market represents the investments of many a tax payer who will benefit the most if the equity markets revive.

 

Much has already been written about the impact on the markets and the investor sentiment. I will, therefore, focus on one aspect