Q. Consider the following statements regarding “National Investment Fund (NIF)”:
1.It was established in 1992.
2.The proceeds from disinvestment will be channelized into the NIF, which is to be maintained within the purview of the Consolidated Fund of India.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: D
Notes:

Explanation: National Investment Fund: In January 2005, the Government of India decided to constitute a ‘National Investment Fund’ (NIF) 50 which has the following salient features:

  • The proceeds from disinvestment will be channelized into the NIF, which is to be maintained outside the Consolidated Fund of India.
  • The corpus of the National Investment Fund will be of a permanent nature.
  • The Fund will be professionally managed, to provide sustainable returns without depleting the corpus, by selected Public Sector Mutual Funds (they are, UTI Asset Management Company Ltd.; SBI Funds Management Company Pvt. Ltd.; LIC Mutual Fund Asset Management Company Ltd.).

Source: Ramesh Singh

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