New Delhi, Dec 4 (IANS): The total amount in the investment corpus of the Employees’ Provident Fund Organisation (EPFO) more than doubled in the past five years to Rs 24.75 lakh crore in the financial year 2023-2024 from Rs 11.1 lakh crore 2019-20, according to official figures.
EPFO invests funds in accordance with the pattern of investment notified by the Department of Financial Services, Ministry of Finance. These investments have been made in Debt Securities and Exchange-Traded Funds, as per the prescribed pattern. As per approval of the 207th meeting of the Central Board of Trustees (CBT), EPF, held on March 31, 2015, the EPFO started investment in Exchange-Traded Funds from August 2015 onwards.
The total corpus of various funds managed by EPFO was Rs 24.75 lakh crore as of March 31, 2024, Union Minister of State for Labour and Employment Shobha Karandlaje informed the Lok Sabha.
“EPFO regularly invests in Equity markets through Exchange Traded Funds (ETFs) replicating BSE-SENSEX and NSE NIFTY-50 indices. In addition, EPFO has also invested from time-to-time in ETFs constructed specifically for disinvestment of shareholding of the Government of India in body corporates, namely ETFs tracking Bharat 22 and CPSE Indices,” the Minister said.
According to data tabled by the Minister, EPFO has invested Rs 34,207.93 crore in ETFs during 2024-25 (up to October 2024).
EPFO Board okays redemption policy for ETFs to boost earnings for members
The meeting of the EPFO Central Board of Trustees chaired by Labour and Employment Minister Mansukh Mandaviya on November 30 approved a Redemption Policy for Exchange-Traded Fund (ETF) investments in CPSE and Bharat 22 to generate higher income for the EPF Scheme's 'Interest Account'.
The policy mandates a minimum five-year holding, returns exceeding government securities, and performance above the CPSE and Bharat 22 indices, according to an official statement issued after the meeting.
CBT also approved the guidelines for investment in Units issued by Public Sector Undertaking (PSU) sponsored Infrastructure Investment Trusts (InvITs)/ Real Estate Investment Trusts (REITs) regulated by the Securities and Exchange Board of India.
The decisions are aimed at a prudent investment of corpus to ensure enhanced returns for 70 million EPFO subscribers.