EPFO Investment: Employees Provident Fund Organisation, which runs a social safety scheme for organized sector staff, affords its subscribers revenue primarily based on the returns they earn from investments in debt devices and change traded funds in the inventory market. Decides the EPF fee yearly. But does EPFO additionally make investments cash straight in the inventory market? Which are the Blue-Chip Shares which are included in EPFO’s portfolio? Obviously, each investor investing in the inventory market will be curious to know whether or not shares of any blue chip firm are current in the portfolio of EPFO. This query was requested to the federal government in the Lok Sabha through the winter session of Parliament. And you will be surprised to hear the reply given by the federal government!
Question to the federal government in Parliament
In the Lok Sabha, the Ministry of Labor and Employment below which EPFO comes, this query was requested whether or not EPFO has invested enormous quantity in Debt Instruments and Exchange Traded Funds (ETF)? How a lot has EPFO invested in the inventory market and associated merchandise in every of the final seven years and the present 12 months? Also the query was raised that how a lot EPF quantity has been invested in the shares of blue chip corporations in the final 5 years?
Investment of Rs 2.35 lakh crore in ETF
Answering this query, Minister of State for Labor and Employment Shobha Karandlaje stated, in accordance to the sample of funding notified by the Department of Financial Services of the Finance Ministry on March 2, 2015, the Central Board of Trustees, EPF. EPFO invests below the rules issued by EPFO. EPFO has invested in each debt devices and change traded funds. Investment in ETF began from August 2015. EPFO has invested Rs 22,40,922.30 crore in debt devices. This additionally contains the quantity which has been stored in the Public Account of India. EPFO has invested Rs 2,34,921.49 crore in change traded funds.
EPFO has shares of which blue chip firm?
On the query associated to funding of EPF quantity in the shares of blue chip corporations in the final 5 years and funding in the share market in the final seven years, the Minister of State for Labor and Employment stated, EPFO has invested in the shares of any listed and unlisted corporations in the fairness market. Not straight invested in. That means there are no blue chip shares in EPFO’s portfolio.
Shobha Karandlaje stated that EPFO doesn’t make investments straight in any shares in the fairness market. EPFO invests cash in the inventory market via change traded funds primarily based on BSE-Sensex and NSE Nifty 50 indices. EPFO has additionally invested in Bharat 22 ETF and CPSE Indices. He stated that until the month of October of the present monetary 12 months 2024-25, EPFO has invested Rs 34,207.93 crore in ETF.
EPFO provides curiosity on EPF yearly!
Employees Provident Fund Organization pays annual curiosity on the hard-earned cash deposited by staff in the Provident Fund. As of March 31, 2024, a corpus of Rs 24.75 lakh crore was amassed in numerous funds managed by EPFO. 8.25 p.c EPF fee was declared in the monetary 12 months 2023-24. The EPF fee is but to be introduced for the present monetary 12 months 2024-25.
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