gs1medium

With reference to the National Investment Fund to which the disinvestment proceeds are routed, consider the following statements :

  1. 1.The assets in the National Investment Fund are managed by the Union Ministry of Finance.
  2. 2.The National Investment Fund is to be maintained within the Consolidated Fund of India.
  3. 3.Certain Asset Management Companies are appointed as the fund managers.
  4. 4.A certain proportion of annual income is used for financing select social sectors.

Which of the statements given above is/are correct?

  1. A.1 and 2
  2. B.2 only
  3. C.3 and 4
  4. D.3 only
▶ Answer & Explanation

Correct answer: C. 3 and 4

The National Investment Fund (NIF) was established to channelize the proceeds from the disinvestment of Central Public Sector Enterprises (CPSEs). Instead of being managed directly by the Ministry of Finance, professional fund managers, typically Asset Management Companies (AMCs), are appointed to manage the NIF's assets. Furthermore, a portion of the income generated by the fund is earmarked for investment in select social sector programs, aligning with government objectives for social development.

Source: UPSC gs1 2010

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