EPFO infuses Rs. 7,715 cr into equities in Q1
Retirement fund body EPFO has made equity investment of Rs 7,715 crore in the first quarter of this fiscal, Parliament was informed on Monday.
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New Delhi: Retirement fund body EPFO has made equity investment of Rs 7,715 crore in the first quarter of this fiscal, Parliament was informed on Monday.
The EPFO can invest up to 15 per cent of investment in equity as per the Pattern of Investment notified by the central government and the internal guidelines of the EPFO approved by the Central Board of Trustees (CBT), Employees' Provident Fund (EPF). The Employees' Provident Fund Organisation (EPFO) has invested Rs 7,715 crore in equity till June 30 in 2021-22, Minister of State for Labour and Employment Rameshwar Teli stated in a written reply in the Lok Sabha.
However, the minister added that the EPFO invests only in Exchange Traded Funds (ETFs) through ETF manufacturers (SBI-Mutual Fund and UTI-Mutual Fund) and not in individual shares. A joint representation was received from some trade unions on involving workers in the decision making process while investing in equity. Finance Investment and Audit Committee (FIAC) and the Central Board of Trustees of EPFO, which are mandated for investing in equities and other instruments, have representatives of workers. The equity investment of the EPFO was Rs 31,025 crore in 2020-21, Rs 32,377 crore in 2019-20 and Rs 27,743 crore in 2018-19. The minister also stated that the EPFO has received Rs 57,846 crore as contribution from its subscribers in the first quarter of this fiscal (April-June 2021). The body had received Rs 2,18,345 crore contribution from its subscribers in 2020-21. It was Rs 2,19,325 crore in 2019-20 and Rs 1,87,214 crore in 2018-19.
