labour Ministry is of the opinion that the retirement fund body EPFO should increase investments in the stock markets through ETFs, as the exercise has started giving returns. “We see the possibility of it increasing, but we want to discuss it with the Central Board of Trustees (CBT). I believe the investment in ETFs should rise,” labour Minister Bandaru Dattatreya told reporters here when asked about the issue of increasing EPFO’s investment in Exchange Traded Funds (ETFs).
A meeting of EPFO apex decision making body, CBT, is scheduled on Friday , where the issue of increasing investments in ETFs is expected to be taken up. CBT is headed by the labour Minister. Dattatreya, however, said the Government will take the issue of investments in the stock markets ‘step by step’ and maintain a ‘cautious approach’. The issue will also be discussed with the CBT.
“See ETFs are performing now. The returns are now positive and so we feel we can increase the investments, but this have to be a step-by-step process,” he added. As on March 31, 2016 the amount invested was `6,577 crore which gave a return of `6,601 crore, up by 0.37 per cent. As on April 30, 2016 the amount invested was `6,674 crore and this gave a return of `6,786 crore, which is up by 1.68 per cent.