New Delhi: EPFO and its related entities are all set to upgrade its investment in stock market to upto 15%, discussed in Pune on Saturday.
Its advisory body Finance, Investment and Audit Committee (FAIC) examined the proposal at meeting in the presence of chairperson Minister Bandaru Dattatreya to upgrade the limit of 10% at present.
CBT is the main body who takes the major decision on EPFO related entities will be giving final call in short time to raise the investments in stock market exchange traded fund (ETF) from the current F.Y. 2017, as stated by FAIC.
EPFO has the capability to invest Rs 15,000 crore in ETFs in 2017-18 as its investible deposit is whopping 1 lakh crore, balancing this figure yearly.
According to a status report on ETFs, the EPFO has invested Rs 21,050 crore in the market-linked product by the end of April 2017. Of this, Rs 18,182 crore have been invested through SBI Mutual Fund and Rs 2,868 crore via UTI Mutual Fund.
UTI mutual fund has earned 7.39 percent while SBI mutual fund has given soaring return of 110.03%.
Although, EPFO has begun investing the private sector funds in the market since mid-2015 with 5% investible deposits in equity-linked schemes, which later on raised to the value of 10%.
Giving one-year extension to SBI and UTI mutual fund, till June 2017, proposed by CBT in Pune meeting for ETF investments.
Earlier, CBT deferred the proposal to raise investments in ETFs as some of the employees were not in the favour for vetting the move by the FAIC. They had also raised the issue of having a definitive exit policy to liquidate investments in government securities, ETFs and state loans to maximise returns for its members.