EPFO's Investment Fund Surges to Rs 24.75 Lakh Crore Over Five Years
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New Delhi, Dec 4 (NationPress) The Employees’ Provident Fund Organisation (EPFO) has seen its investment corpus more than double over the last five years, reaching Rs 24.75 lakh crore in the financial year 2023-2024, compared to Rs 11.1 lakh crore in 2019-20, according to official reports.
The EPFO allocates funds based on the investment strategy outlined by the Department of Financial Services, Ministry of Finance. These funds are primarily invested in Debt Securities and Exchange-Traded Funds following the prescribed guidelines. Following the approval from the 207th meeting of the Central Board of Trustees (CBT) on March 31, 2015, the EPFO began investing in Exchange-Traded Funds starting August 2015.
As of March 31, 2024, the total corpus across different funds managed by EPFO stands at Rs 24.75 lakh crore, as stated by Union Minister of State for Labour and Employment Shobha Karandlaje during a session in the Lok Sabha.
“EPFO consistently invests in Equity markets via Exchange Traded Funds (ETFs) that mirror the BSE-SENSEX and NSE NIFTY-50 indices. Furthermore, EPFO has periodically invested in specialized ETFs designed for the disinvestment of Government of India shareholding in corporate entities, including ETFs that track Bharat 22 and CPSE Indices,” the Minister elaborated.
Based on data presented by the Minister, EPFO has allocated Rs 34,207.93 crore to ETFs during the fiscal year 2024-25 (up to October 2024).
EPFO Board endorses ETF redemption policy to enhance member earnings
During a meeting chaired by Labour and Employment Minister Mansukh Mandaviya on November 30, the EPFO Central Board of Trustees approved a Redemption Policy for ETF investments in CPSE and Bharat 22 aimed at generating increased income for the 'Interest Account' of the EPF Scheme.
The policy stipulates a minimum holding period of five years, with returns that surpass government securities and performance that exceeds the CPSE and Bharat 22 indices, as per an official statement released after the meeting.
Additionally, the CBT sanctioned guidelines for investments in Units issued by Public Sector Undertaking (PSU) sponsored Infrastructure Investment Trusts (InvITs) and Real Estate Investment Trusts (REITs) that are regulated by the Securities and Exchange Board of India.
These measures are designed to facilitate the judicious investment of the corpus, ensuring improved returns for 70 million EPFO members.
