Minister of State of Labour Rameswar Teli Thursday knowledgeable the Rajya Sabha that the Employees’ Provident Fund Organisation (EPFO) has invested just a little over ₹2 lakh crore in exchange-traded funds since 2018-19, which accounts for its publicity in fairness markets.
The minister stated out of a complete corpus of ₹18.3 lakh crore, the EPFO has invested 8.7% in ETFs and 91.3% in debt devices together with these of Public Account of India.
The Minister of State of Labour was talking in response to a query on funding of EPFO fund.
“The EPFO invests in equity markets through ETFs, replicating BSE Sensex and Nifty 50 indices. From time to time, EPFO has also invested in ETFs constructed specifically for disinvestment of shareholding of the Government of India in body corporates,” he acknowledged.
The EPFO investments in ETFs have been on rising since 2018-19 when it invested ₹27,974 crore. The corpus elevated to ₹31,501 crore in 2019-20 and through the years it rose to ₹53,081 crore in 2022-23.
In the present fiscal until July, the EPFO had invested ₹13,017 crore in ETFs. The retirement physique has invested a complete of ₹2,01,212 crore in ETFs since 2018-19 until July 2023.
The EPFO had begun investing in equities via ETFs in 2015-16 with an preliminary publicity of 5% of incremental deposits. This was step by step elevated to 10%. The EPFO’s Central Board of Trustees, which is the apex choice making physique, chaired by labour minister Bhupender Yadav, in its final assembly in March this yr additionally determined to extend the publicity to fifteen% in a bid to enhance returns for depositors.
“EPFO doesn’t make investments instantly in particular person shares together with shares of any blue-chip firm. EPFO invests in Equity markets via ETFs replicating BSE-Sensex and Nifty-50 indices,” Teli stated.
The retirement physique has additionally invested from time-to-time in ETFs constructed particularly for disinvestment of shareholding of the Government of India in physique company, the minister additional stated.
The EPFO introduced an rate of interest of 8.15% for PF deposits for 2022-23, which was simply marginally increased than the multi decade low fee of 8.1% for 2021-22. Depositors in addition to members of the CBT have been pushing for a better return on retirement financial savings.
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Updated: 10 Aug 2023, 07:25 PM IST
