EPFO Stock Market Investment: In 2015, EPFO was granted permission to make stock market investments. Additionally, ETF investments are permitted for 5 to 15% of the entire amount.
Investment in EPFO: The Employees Provident Fund Organization, which administers a social security program for workers in the organized sector, determines the yearly EPF rate by looking at the returns that its members receive from stock market investments in exchange-traded funds and debt instruments. However, does EPFO make direct stock market investments? In the EPFO portfolio, which blue-chip stocks are included? It goes without saying that any stock market investor would want to know if the EPFO portfolio includes shares of any blue-chip companies. During the winter session of Parliament, this issue was posed to the government in the Lok Sabha. And you’ll be shocked to hear the government’s response!
A question in parliament to the government
The question of whether EPFO has made significant investments in debt instruments and exchange-traded funds (ETFs) was posed to the Ministry of Labor and Employment, which is the entity under which EPFO operates, in the Lok Sabha. How much has EPFO invested this year and during the past seven years in the stock market and associated products? How much of the EPF has been invested in blue-chip company shares over the past five years was another question posed.
2.35 lakh crore was invested in an ETF
In response, Minister of State for Labor and Employment Shobha Karandlaje stated that EPFO invests in accordance with the instructions provided by the Central Board of Trustees, EPF, as per the Pattern of Investment announced by the Department of Financial Services, Ministry of Finance on March 2, 2015. EPFO has made investments in exchange-traded funds as well as debt products. ETF investments began in August 2015. EPFO has made debt instrument investments of Rs 22,40,922.30 crore. The sum held in the Indian Public Account is also included in this. EPFO has made exchange-traded fund investments of Rs 2,34,921.49 crore.
Which major corporation does EPFO own shares of?
The Minister of State for Labor and Employment responded that EPFO has not made direct investments in the shares of any listed or unlisted companies in the equity market when asked about the EPF amount’s investment in blue-chip company shares over the previous five years and its investment in the share market over the previous seven years. In other words, EPFO’s portfolio does not contain any blue-chip stocks.
According to Shobha Karandlaje, EPFO doesn’t make direct stock investments in the equities market. Through exchange-traded funds that are based on the NSE Nifty-50 and BSE-Sensex indices, EPFO makes stock market investments. Additionally, EPFO has made investments in CPSE Indices and the Bharat 22 ETF. In the current fiscal year 2024–2025, he stated, EPFO had invested Rs 34,207.93 crore in ETF as of October.
Every year, EPFO pays interest on EPF!
The hard-earned money that employees deposit in the Provident Fund is rewarded with interest each year by the Employees Provident Fund Organization. A total of Rs 24.75 lakh crore had been invested in different EPFO-managed funds as of March 31, 2024. The EPF rate of 8.25 percent was announced for the fiscal year 2023–2024. For the current fiscal year 2024–2025, the EPF rate has not yet been announced.
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