EPFO To Increase Investment In ETFs To Rs. 22500 Crore

In line with high returns garnered from investments in ETFs, EPFO has decided to increase its investments in ETFs this fiscal year.

In view of high returns garnered from equity investments in the last two years, EPFO or Employees Provident Fund Organization is on the path of increasing its investments in ETFs to almost double at around Rs. 22,500 crore in the current financial year.

EPFO To Increase Investment In ETFs To Rs. 22500 Crore

Labour Minister, Dattatreya, in a written reply in Rajya Sabha said "The investment limit in ETFs has been recommended to be raised from 10% to 15% by the Central Board of Trustees, Employees Provident Fund, in its 218th meeting held in May". "Accordingly the estimated investment in ETF for the current financial year is approximately Rs. 22,500 crore".

The retirement fund body started investment in ETFs in August 2015 with an initial investment amounting to just 5% of its investible deposits. Since then, the EPFO body made cumulative returns of over 13% on its investments in ETFs.

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