The Labour Ministry is again facing resistance from the trade Unions as it seeks to raise EPFO minimum equity limit to 15 percent, say sources.
V K Sharma, chairman, LIC said that they are a contrarian player in the markets. He added that equity usually forms 12 percent of their total investable assets.
The Employees Provident Fund Organization (EPFO) is seeking clear exit policy on its equity investments from the government before deploying any more money in the market, reports CNBC-TV18.
Low risk profile investor who wants to invest for better returns compared to bank fixed deposits or post office schemes can invest in multi-asset mutual funds.
It is less cumbersome to buy equity given the handholding offered by mutual funds.
The mutual fund industry is betting big on banking space with equity investments worth over Rs 43,000 crore, the highest level in over three years.