1. EPFO gives nod to hike investment in exchange traded funds to 15%

EPFO gives nod to hike investment in exchange traded funds to 15%

The Employees Provident Fund Organisation has approved hike in investment limit in exchange traded funds (ETFs) to 15 per cent, from the existing 10 per cent, Union Labour Minister Bandaru Dattatreya said today.

By: | Pune | Updated: May 27, 2017 10:26 PM
The Employees Provident Fund Organisation has approved hike in investment limit in exchange traded funds (ETFs) to 15 per cent, from the existing 10 per cent, Union Labour Minister Bandaru Dattatreya said today. v (PTI)

The Employees Provident Fund Organisation has approved hike in investment limit in exchange traded funds (ETFs) to 15 per cent, from the existing 10 per cent, Union Labour Minister Bandaru Dattatreya said today. The decision was taken during the meeting of the Central Board of Trustees (CBT) here today. “Seeing the rate of return during the meeting of the CBT, we have increased the investment into ETFs to 15 per cent, from the existing 10 per cent,” said Dattatreya, who was here to chair the CBT meeting.

He said the government in 2015 had taken a decision to invest in ETFs and 5 per cent was invested then. In 2016, the investment was raised to 10 per cent. “First year, we had invested Rs 6,577 crore and in the second year, the investment was Rs 14,982 crore. Now, the total investment as on April 2017 is Rs 22,858.69 crore. I am happy to inform you that the rate of return on our investment in ETF is 13.72 per cent,” said the minister while addressing the media.

He said Rs 234.86 crore have been earned as a dividend with this pattern of investment. Asked how the EPFO will distribute the gains to its subscribers, Labour Secretary M Sathiyavathy said, “The money which is being invested is in the Sensex, the Nifty and central public sector ETFs. These are the three ETF where we are allowed to invest.”

She added: “Now, we need to frame an exit policy. Once we get revenue out of it or an income, that will be deposited and the money will be given to the members.” This exit policy, the secretary said, was discussed today and the members sought some clarification. So, the EPFO intends to make one more presentation at the next CBT meeting. “We had requested IIM Bangalore to do a study on this and give us the options. They have given us the options and we presented it before the members today,” she said, adding that the members want some more time to examine them. “We will be bringing the exit policy at the next CBT meeting to take a final call.”

  1. I
    Ind
    May 28, 2017 at 1:41 am
    Telangana government will give insurance to EPFO investments in stock markets.
    Reply
    1. R
      Rohan Baraiya
      May 27, 2017 at 10:53 pm
      Datle
      Reply
      1. Sudarsanarao Vrs Mullapudi
        May 27, 2017 at 10:51 pm
        I request epfo to hike pension from onethousand three hundred to tenthousand to retired cooperative bank employees immediately.
        Reply
        1. G
          Giriraj
          May 27, 2017 at 11:22 pm
          Sir,The pension for all the govt employees,are revised,desision has been taken for a minimum pension of Rs,9000/- in the ministry effect from Jan,2016, and waiting for the implementation,and we hope to get it before our last breath,and hops are dues ! M.G.Giriraj. A retired employee of a Govt of India undertaking.
          Reply

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