It is not just retail investors who are convinced about the power of the mutual fund (MF) as a vehicle of long-term wealth creation; many charitable organisations and trusts too seem to think so. According to industry sources, these groups have been steadily increasing their exposure to equities through mutual funds. There are many religious and nonreligious trusts out there which are deploying 60-80% of their long-term funds in equity schemes, fund industry experts say.
Swaminarayan Trust, Ahmedabad, Gujarat Cancer Society, Ramkrishna Mission, Tirumala Tirupati Devasthanam, Missionaries of Charity, Ram Janambhoomi Nyas, Ayodhya, Dyal Singh College Trust, Charities Aid Foundation India, Environment Support Group, Shwetambar Trust, International Centre for Entrepreneurship and Career Development, Birla Kalyan Nidhi Trust, Hindustan Charity Trust and Bombay Hospital Trust are some of the more prominent trusts which have been investing in mutual funds.
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,? says the distribution head of a fund house that claims to have a handful of trust-focussed mutual fund schemes.
As per Indian Trust laws, religious organisations, charitable trusts, Wakf boards and registered societies are allowed to invest in mutual funds.
