Mutual fund is no more a revenue generator for the likes of big, budding or prospective investors only, even the well-known charitable institutions and organisations are taking the route to earn handsome returns in a short span of time. According to some reliable sources, it has been observed recently that investing in mutual funds is slowly becoming popular among these organisations and as the time progresses it is expected that more and more organisations will join the herd.
These organisations which consist of both religious and non-religious trusts are investing a majority of the capital with them in the long-term funds in equity schemes. Several eminent names in the field of performing social works such as the Gujarat Cancer Society, Charities Aid Foundation of India, Ram Janambhoomi Nyas, Shwetambar Trust, Missionaries of Charity, International Centre for Entrepreneurship, Hindustan Charity Trust, Birla Kalyan Nidhi Trust and many more have joined the league of investing into the mutual funds.
This augers well for the mutual fund industry, as in the near future, more funds are expected to flow into this business. A distribution head of a fund house said, “Many charities have surplus funds not needed to fund their immediate charitable activities; often, the trustees invest some or all of this surplus in order to generate extra income to fund future activities.” He also claimed that he has ample trust-oriented mutual fund schemes with him, which is clearly a good omen for the mutual fund industry.
Interestingly, the Indian Trust Laws have granted the right to religious organisations, Wakf boards, registered societies and even the charitable trust to invest into mutual fund schemes. Investment from these organisations is a good news for all the mutual fund players, as it will ultimately help them on the promotional front, and will also help them in reaching out to people in the remote corners of the country.
Jayshankar Maharaj of the Ramakrishna Mission also voiced his opinion in favour of the investment in the mutual funds, he said, “ Almost all major organisations are investing in mutual funds now. These boards generally take a very conservative approach as they are dealing with public money. Many trust boards invest in mutual funds which offer systematic investment plans.”
Rajiv Bajaj, Managing Director, Bajaj Capital explained the reason behind this emerging trend, he said, “ The trend of investing into mutual funds is more of a natural progression. Even though these are non-profit organisations, trust boards always show inclination to optimise their portfolio yields. By investing in mutual funds, these boards crave for simple 12-15% annualised returns. The investment profile of charity organisations is very similar to pension funds.”
These organisations which consist of both religious and non-religious trusts are investing a majority of the capital with them in the long-term funds in equity schemes. Several eminent names in the field of performing social works such as the Gujarat Cancer Society, Charities Aid Foundation of India, Ram Janambhoomi Nyas, Shwetambar Trust, Missionaries of Charity, International Centre for Entrepreneurship, Hindustan Charity Trust, Birla Kalyan Nidhi Trust and many more have joined the league of investing into the mutual funds.
This augers well for the mutual fund industry, as in the near future, more funds are expected to flow into this business. A distribution head of a fund house said, “Many charities have surplus funds not needed to fund their immediate charitable activities; often, the trustees invest some or all of this surplus in order to generate extra income to fund future activities.” He also claimed that he has ample trust-oriented mutual fund schemes with him, which is clearly a good omen for the mutual fund industry.
Interestingly, the Indian Trust Laws have granted the right to religious organisations, Wakf boards, registered societies and even the charitable trust to invest into mutual fund schemes. Investment from these organisations is a good news for all the mutual fund players, as it will ultimately help them on the promotional front, and will also help them in reaching out to people in the remote corners of the country.
Jayshankar Maharaj of the Ramakrishna Mission also voiced his opinion in favour of the investment in the mutual funds, he said, “ Almost all major organisations are investing in mutual funds now. These boards generally take a very conservative approach as they are dealing with public money. Many trust boards invest in mutual funds which offer systematic investment plans.”
Rajiv Bajaj, Managing Director, Bajaj Capital explained the reason behind this emerging trend, he said, “ The trend of investing into mutual funds is more of a natural progression. Even though these are non-profit organisations, trust boards always show inclination to optimise their portfolio yields. By investing in mutual funds, these boards crave for simple 12-15% annualised returns. The investment profile of charity organisations is very similar to pension funds.”
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