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EPFO Likely to Invest over Rs 6,000 Crore

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Union Labour Minister Bandaru Dattatreya hassaid the Employees ' Provident Fund Organisation (EPFO) may invest more than Rs.6,000 crore in equity market during the current financial year. The minister, however, added that a final decision will be taken by the Central Board of Trustees at the next meeting.
Last year, EPFO had invested about Rs.6,000 crore through SBI Mutual Fund's two ETFs (exchange-traded funds) -one linked to BSE's Sensex and the other NSE's Nifty .
“It (investments into ETFs) may increase over last year because it will yield benefits in the long run even if there is no benefit in the short term. Last year, we had invested Rs.6,000 crore.This year, we may invest more than that. There was discussion with bankers and investment managers and officials from BSE and NSE,“ said Dattatreya.
The finance ministry had last year notified a new investment pattern for EPFO, allowing the body to invest a minimum of 5% and up to 15% of its funds in equity or equity-related schemes.
However, the EPFO management decided to invest 5% of its incremental deposits in ETFs only during the last year.
The Economic Times New Delhi,16th May 2016

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