EPFO panel suggests investment in ETFs for 5-10 years for better returns

An expert group set up by retirement fund body EPFO has pitched for long-term investment in stocks ranging from 5-10 years, saying this would yield better returns for over six crore subscribers, according to a source. The report of the panel set up by the Employees Provident Fund Organisation (EPFO) was listed on the agenda of its advisory body Finance and Investment Committee (FIC) meeting held on September 19, 2018.

However, a source said that the discussion on the report was deferred for the next meeting expected to be scheduled sometime in the first half of the next month.

"The panel has recommended that the EPFO should invest in the Exchange Traded Funds (an equity-linked scheme) for a long tenure of five years to 10 years to get higher returns and not for a short term of up to three years," the source said.

The five-member panel was headed by Financial Advisor and Chief Account Officer of the EPFO with HDFC Mutual Fund CEO on its board.