EPFO has been in news for all right reasons. Recently, there was news about settle EPFO claims via mobile. Now there is news about ETF investments. As per latest news on EPFO. The retirement fund body delayed proposal on ETF investment hike.
Investment in ETF or exchange traded funds
Proposal was about increasing investment in stock market. This increase will be 15% of the investible deposits. However, at present it is 10%. In addition, this rise in investment was in Exchanges Traded Funds.
However, representatives of trade unions were against this decision. This news comes after their meeting with EPFO authorities.
As of now plans are there for this proposal to go to higher authorities. Thus, it will go to EPFO advisory body the Finance Audit and Investment Committee. This advisory committee will carefully look at different things.
Additionally, when they are comfortable with the features. Only then authorities will forward this report to Central Board of Trustees. In this way, they will get a final answer.
Investments in ETF
As of 18th February 2017, a total of Rs. 18, 069 crore invested already. Because Employees’ Provident Fund Organisation invested this amount. Investment was made in ETFs. Full form of ETF is Exchange Traded Funds.
Labour Minister’s statement
Apart from this, Mr. Bandaru Dattatreya, the Labour Minister informed that EPF investment may increase. This increase is for ETF investment. Moreover, Mr. Dattatreya added that this investment has a reason. And this is that EPF got some good returns.
Some time ago, the Labour Minister had released other schemes related to EPF. One of them was EPFO housing scheme 2017 for EPFO members. And now there are other plans to make best use of EPF.
Delay in decision
To help have better idea on ETF investment. The Central Board of Trustees decided to delay final decision. So that it does not have negative result on anything.
Amount required for ETF investments
Currently Rs. 1 lakh crore is investible amount. This is with EPFO every fiscal. But when it comes to raising investment in ETF. It would mean that there will be a total of 5% increase from present 10%. Thus, there will be Rs. 15, 000 crore in stock market. In addition, this amount will be same every year.
Finally, it is now to see what decision will Central Board of Trustees take. For more information, we must wait for some more time. Till then you can know how to check EPF balance.