Retirement fund manager EPFO has invested Rs2,322.1 crore in exchange traded funds (ETF) till October as part of its planned investment of Rs5,000 crore in equities this fiscal.
The Employees’ Provident Fund Organisation (EPFO) invested Rs2,322.1 crore in ETFs in August-October period through SBI Mutual Funds in Sensex and Nifty.
The EPFO’s apex decision making body, the Central Board of Trustees’ (CBT) headed by labour Minister, will review these investments during its meeting scheduled on November 24.
The CBT has decided to invest in ETFs which are considered safer than making investments in single equity shares of a company. Trade unionist on its board had opposed the move in view of volatility of stock markets.
Being cautious on investment in stock market, EPFO has decided to invest 5 per cent of its incremental deposits in the ETFs during the current fiscal year.