Retirement fund body EPFO will invest Rs 20,000crore in exchange traded funds this fiscal as it has decided to raise the investment limit in ETFs, Union Minister Bandaru Dattatreya said today.
“Yesterday, the Employees Provident Fund Organisation (EPFO) Central Board of Trustees meeting held in Pune agreed on the proposal for raising ETF investments from 10 to 15 percent of investible deposits. This year we are going to invest Rs 20,000crore in ETF,” the Union Minister of State for Labour and Employment told reporters here.
The Finance Ministry had earlier notified a new investment pattern for EPFO, allowing the body to invest a minimum of 5 percent and up to 15 percent of its funds in equity or equity-related schemes.
In the first year (2015-16), Rs 6,577crore was invested, while the figure for 2016-17 stood at Rs 14,982crore. The return on investment in ETF was 13.72 percent, Dattatreya said, adding Rs 234.86crore was earned as dividend on the investment.
On the issue of raising the wage ceiling for coverage of employees under the EPFO’s social security net from the existing Rs 15,000 per month, Dattatreya said that it is under examination now.