Government of India decides to raise EPFO investment in ETF from 5per cent to 10 per cent
OREANDA-NEWS. September 30, 2016. The Government has decided to raise the Employees Provident Fund ( EPF) investment in Exchange Traded Funds from present 5 per cent to 10 per cent. Announcing this Shri Bandaru Dattatreya, the Minister of State(IC) for Labour and Employment said that the decision has been taken considering the good returns in ETF investment.
As per earlier decision EPFO is currently investing 5 per cent of the total accretion in Exchange Traders Fund (ETF). Accordingly, for the last one year, the EPFO has invested 6,577 crore in ETF for the financial year 2015-16.
This investment has yielded a good return of 13.24 per cent. The past performance of the last six months from April, 2016 to August, 2016 shows gradual appreciation in the returns from 0.37 per cent in March, 2016 to 13.24 in August, 2016 per cent. Five per cent EPF has been invested in NIFTY 50 and SENSEX.