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EPFO's equity exposure

EPFO to invest Rs. 6,000 crore in Equities, ETFs
By OLM Desk | June 01, 2016

In 2015-16, the Employees Provident Fund Organisation (EPFO), for the first time, had taken a Rs 6,000 crore exposure into equities through SBI Mutual Fund. The exposure was into two ETFs based on the BSE Sensex and NSE Nifty. Despite a not-so-impressive fare, the EPFO is committed to invest more money this financial year; however, it will be the Central Board of Trustees (CBT), who will take the final decision. The equity exposure comes on back of a Finance Ministry notification on new investment pattern for EPFO, which allows the EPFO to invest a minimum of 5 per cent and up to 15 per cent of its funds in equity or equity-related schemes. Based on this notification, the EPFO invested 5 per cent of its incremental deposits in ETFs last year as its first foray into equity investments. The discussions on investments in the current year include parking money in PSUs besides the ETFs, subject to the clearance of the trustees.



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