EPFO will invest 5% of its corpus in Stock market / Equities ETF
Government has allowed EPFO to invest 5 % of its corpus in exchange traded funds (ETF). Labour ministry has notified new investment pattern for the Employees' Provident Fund Organization which allows the body to invest 5-15% per cent of its funds into Equity Market.
As this is the first time EPFO will be investing in Equity markets, they are little cautious and decided to invest 1% in the beginning and going upto 5% by end of financial year.
The new investment pattern will be applicable for incremental deposits only. As per estimates, the EPFO's incremental deposits for 2014-15 would be around Rs 80,000 crore which means that EPFO will invest approx Rs 5000 crore in stock markets during this fiscal in the form of ETFs.
During the current fiscal, the incremental deposits could be around Rs...