Study of the investment pattern of various trusts and development of products and services for these trusts in light of the proposed broadening of investment avenues

Abstract

This summer project involves: 1)An in-depth study of the investment patterns of various trusts and classification of trusts. Emphasis IS also given on the investment decision making process. 2)Forecasting the investment pattern of various trusts. 3)Suggesting products and services that Indbank can use to address the needs of these trusts. All trust investments are governed by strict government regulations. The religious and charitable trusts can invest only in the avenues approved by the Charity Commissioner and Which are in conformance with the Income-Tax Act. For the Provident Fund trusts the exact investment pattern to be followed is declared by the Ministry of Finance every year. All trusts visited enjoy full exemption from In- come-Tax and therefore. do not require investment in tax-free avenues. The religious and charitable trusts have invested in Fixed Deposits. units of UTI (esp. CRTS), bonds/deposits with HDFC" bond/ debentures of various government companies. The total yield obtained by the religious and charitable trusts is 13% to taken by board of trustees and recommendations of trust managers/secretaries and the Chartered Accountants. Who are advisors to trusts, have a very significant bearing on the final decision. The most important criterion while deciding on a particular investment option is the return offered, followed by liquidity and security.