Web of Financial Scandal

Fri, 01 Jul 2005 01:52:47 +0000

August 18: The recent arrest of P S Subramanyam, chairman Unit Trust of India, has sent shock waves through the country, among the 20 million people who had invested their lifetime savings in India’s oldest public mutual fund company. What exactly happened?

A mutual fund company has one main function: to take in or mobilise people’s savings and invest them on their behalf, to maximise the returns. Most of us put our savings in banks. Banks are seen to be solid and safe but they do not give more than 9 per cent returns (interest). Mutual funds, on the other hand, are attractive because they give higher returns or interest on the savings.

Investing Basics on Pitara Kids Network

Web of Financial Scandal