EPFO Investment In ETFs Has Given 12% Returns

Investment in equities has given 12 per cent higher returns compared to 8 or 7.5 percent on government securities (G-Secs) within a year, said Shankar Aggarwal, Secretary, Ministry of Labour and Employment at an ASSOCHAM event.

"If you are going to invest wisely in a pool of equity then surely there is not much of a risk", he noted. He Aggarwal also said that as on July 31, 2016, they got a return of over 12 percent on equity as compared to 8 or 7.5 percent on G-Secs. He commented on this while inaugurating 'National Conference on Social Security & Role of Equity Market,' organised by Assocham.

"The Employees' Provident Fund Organisation (EPFO) started investing in exchange traded funds (ETFs) in August last year and has invested Rs 7,465 crore till June 30, 016, " Mr. Aggarwal noted.

The Employees' Provident Fund Organisation can invest up to 15 percent of its investible deposits in equity or equity related scheme. The body had decided to park 5 percent of its available funds in ETFs to start with.

Mr. Aggarwal further said, "We are also going to adopt central architecture which will be from 30th September and am sure thereafter everything will be transparent, all certificates will be delivered online and decision to invest in equity will be more transparent."

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