National Investment Fund
- NIF was established in 2005 to channelize the proceeds generated through
the sale of minority shareholding of CPSEs(Central Public Sector Enterprise). The Fund would be
maintained outside the Consolidated Fund of India.
- Government sells part of its shares in the market, and get ca$h. (it is called Disinvestment)
- Government puts that cash in this NIF, instead of the consolidated fund of India.
- The income from the Fund is to be used for the following broad investment objectives:
- 75% to finance selected social sector schemes, which promote education, health and employment
- 25% to meet the capital investment requirements of profitable and
revivable CPSEs that yield adequate returns, in order to enlarge their
capital base to finance expansion/diversification
- However, because of the difficult economic situation caused by global
slowdown, the government in November 2009 decided to utilize proceeds
from disinvestment only for social sector spending. This exemption is
applicable till March 2013.
- NIF fund managers are:
- UTI Asset Management Company Ltd.
- SBI Funds Management Company (Pvt.) Ltd.
- LIC Mutual Fund Asset Management Company Ltd.
- No approval is required to get money out of this fund.
