EPFO most probably will invest in stocks. And according to latest news on EPFO. You can see that this investment is more. And it is Rs. 18, 000 crore in stocks. Additionally, this investment is in current financial year. Even Labour Minister, Bandaru Dattatreya said this.
EPFO investment in stocks to be Rs. 18, 000 crore
Mr. Dattatreya told reporters about EPFO’s investment plans. The minister added that such a step is possible. Moreover, it is because of ‘encouraging returns’. Plus EPFO got good returns in one and half years.
Origin of EPFO investment
EPFO is short form of Employees’ Provident Fund. In addition, it started investing in stocks earlier. While first investment was in August 2015. And from then on investment continues. This is also reason for organisation providing benefits.
Therefore, EPFO subscribers get many benefits. One of them is that housing loans to EPFO members. On other hand, EPFO invested 5% in 2015-16. Moreover, this was part of annual incremental corpus in equities. Whereas it increased the amount to 10%. And this was for 2016-17.
Additionally, EPFO’s annual incremental corpus is Rs. 1.2 trillion. Therefore, 15% of this amount is Rs. 18,000 crore. But decision of this will take place in some time. As CBT (Central Board of Trustees) meeting is on 27th May 2017. This is what Mr. Dattatreya said.
Finance Ministry’s view
Labour Minister Dattatreya added some more points here. He said that there is option. In addition, Finance Ministry provided this option. While it is investing only 15%. Besides this option is of annual incremental corpus in equities.
You already know about increase in equity exposure. EPFO increased from 5% to 10%. However, there are plans for increase to another 5%. Thus it will go up to 15% in 2017-18.
Investments of Employees’ Provident Fund
EPFO organisation invests in equities. Moreover, this is through exchange traded funds (ETF). Here ETF is stocks together. Apart from this stocks reflect composition of index. It can either be Nifty or Sensex. Plus it traded on stock exchange. This retirement fund manager invested Rs. 18,600 crore.
While this investment has been via ETFs. Additionally, SBI Mutual Funds and UTI Mutual Fund. Even Reliance Mutual Fund is part of this. Furthermore returns on investment is 13%. Thus it is higher than other investment returns. You can also check out EPFO claim settlement period is 10 days from now.
Exit from equity investments
Presently there is no exit policy from equity investments. But some EPF officials think that this may be possible. And this topic can be brought up in next meeting. Let us tell you that next EPFO CBT meeting is on 27 May 2017.
Finally in this meeting you will get to know about EPFO investment plan. In addition, Mr. Bandaru Dattatreya added some more things. He said all points CBT EPFO will discuss. And only then they will take final decision.
Furthermore you can now check other benefits of EPF. And this can be NPS to EPF shift possible in future. Last, you can check EPF balance online or offline.