Moneycontrol
May 18, 2017 11:49 AM IST | Source: Moneycontrol.com

EPFO may increase ETF investment limit to 15% from 10%

Retirement body Employees Provident Fund Organisation (EPFO) is looking to increase its investment in exchange traded funds (ETFs) to 15 percent from the current 10 percent.

Retirement body Employees Provident Fund Organisation (EPFO) is looking to increase its investment in exchange traded funds (ETFs) to 15 percent from the current 10 percent, Labour Minister Bandaru Dattatreya told reporters yesterday in New Delhi. He said in the upcoming Central Board of Trustees meet the issue of increasing investment in ETF will be taken up.

The retirement body has earned an “encouraging return” of over 13 percent on the investment made in ETF, he said.

Labour Ministry under which the EPFO comes started investing in ETF in August 2015 by putting 5 percent of the investible deposits. This limit was raised to 10 percent in 2016-17.

The Board has deferred the proposal at the previous meeting held in April as some unions sought clarity on the exit policy for liquidating investment made in ETFs.

The Labour Minister said that the EPFO investment made in ETFs are for long term such as 10-15 years to generate a steady return. EPFO has invested in three ETFs managed by SBI Mutual Fund, UTI Mutual Fund and the central public sector enterprises ETF run by Reliance Mutual Fund.

(With inputs from PTI)
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