The Employees’ Provident Fund Organisation (EPFO), India’s state-run pension fund with a retirement corpus of Rs 8.5 lakh crore, has hit the stock market. EPFO has decided to tread cautiously and to invest only in Exchange Traded Funds to begin with.
- EPFO plans to invest Rs 5,000 crore this fiscal year.
- Labour minister said EPFO subscribers would get more than the 8.7% return they get now by way of annual interest.
- The money will be invested through exchange traded funds (ETFs) and the limit for the current year will be 5 per cent of the incremental deposits.
- EPFO funds will be invested through SBI Nifty exchange-traded fund (ETF) and SBI Sensex ETF managed by SBI Mutual Fund.
- There is scope of further increasing EPFO’s corpus to maximum 15%.
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