Union Labour Minister Bandaru Dattatreya has indicated that, retirement fund body EPFO’s performance of investment in Exchange Traded Funds( EFTs)will be discussing in the forth coming meeting of Central Board of Trustees, which is going to be held on July 7 in Delhi and decision would be taken on how much funds are to be increased from 5%.
The minister pointed stated that “As on March 31, 2016 the amount invested was Rs 6,577 crore which gave a return of Rs 6,601 crore, which is up by 0.37 per cent. As on April 30, 2016 the amount invested was Rs 6,674 crore and this gave a return of Rs 6,786 crore which is up by 1.68 per cent.” Further, Dattatreya stated that, the world over, pension funds’ investments in equities are very much higher as these give good returns in long run and equities are considered long- term investments.
Last year Finance Ministry had notified a new investment pattern for EPFO, in equity or equity-related schemes, retirement fund body can invest minimum 5% and up to 15% of its funds. During 2015-16, Retirement fund body invested Rs 6,577 crore, or 5% of the investible surplus, in equities through ETFs. The investments in ETFs are done in NSE and BSE in the ratio of 75% and 25% of the funds invested, respectively.
