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EPFO Investments in ETFs to Rise – The Finance Ministry had last year notified a new investment pattern for EPFO.
Union Labour Minister Bandaru Dattatreyasaid that EPFO would raise proportion of its investments in exchange traded funds (ETFs) from the present 5 per cent and a final decision on the quantum for current fiscal would be taken very soon. SBI Mutual Fund and UTI Mutual Fund will manage the corpus of the retirement fund in ETFs, he said.
As on July 31 this year, the amount invested in ETF by Employees’ Provident Fund Organisation (EPFO) is Rs.7,468 crore and the market value of this as on date is Rs.8,372 crore, which shows a positive return of 12.1 per cent, the minister said.
“An emergency meeting of Central Board of Trustees (CBT) of EPFO will be convened soon and a final decision on how much (increase in quantum of investments in ETF) percentage will be taken after taking opinion. Earlier, we had gone for 5 per cent. Now, how much we have to increase I will take a decision after the emergency meeting,” Mr. Dattatreya told PTI.
“Anyhow the increase will be there and how much increase…within next 15 days we will decide,” he added.
The Finance Ministry had last year notified a new investment pattern for EPFO, allowing the body to invest a minimum of 5 per cent and up to 15 per cent of its funds in equity or equity-related schemes.
EPFO had started investing up to five per cent of its investible deposits in ETFs in August last year.
Source: The Hindu