EPFO, Employees’ Provident Fund Organisation will decide ETF investment. Even Mr. Bandaru Dattatreya Labour Minister said this. Mr. Dattatreya said decision on ETF investments is important. Therefore there will be a meeting on 27 May 2017. In this meeting EPFO will decide exchange traded funds investment.
What is ETF?
ETF full form is exchange traded fund. Moreover it is investment fund. But it traded on stock exchanges. Thus you can say they are similar to stocks. Besides there will be assets in ETF. These are stocks, bonds, commodities and trades etc.
Finally these ETFs are popular. While this is for exchange traded products only. Now EPFO will decide investment limit in ETFs. Earlier there was another news. And it was about following plans. A report said that EPF deposits might get 8.65% returns in 2017-18 for EPFO subscribers.
CBT EPFO decision on exchange traded fund investment
Apart from that to get clear idea of situation. Employees Provident Fund Organisation planned for EPFO meeting. Agenda of this meeting is to decide investment limit. However currently it is 10%. But authorities look for 15% investment limit.
Thus CBT or Central Board of Trustees and EPFO meet on 27 May. In addition, Minister of State for Labour and Employment Dattatreya. He also confirmed this meeting. This meeting will discuss raising investment. Because now it is 10%.
So whether it should increase or not. Central Board of Trustees and EPFO heads will decide ETF investment percentage. But final decision depends on different things. Because this investment has different effects.
ETF investments till now
You can check investment as of 21st April 2017. Because exchange traded fund investment is Rs. 21,559 crore. On other hand Rs. 23, 845 crore is market value. However absolute return is 10.6% till 31 March. Finally absolute return on 21st April was 11.5%.
Additionally in 2015-16 EPFO invested Rs. 6, 577 crore. Whereas in 2016-17 ETF investment came to Rs. 14, 982 crore. But final decision will happen only latter. Moreover this effects EPFO stock market exposure. Hence it may go up from 10 to 15%.
Such a decision on change of exchange traded funds came after checking various things. First is rate of returns. Because these rates are high. Besides they came from capital market investments. Even authorities consult trade unions. They also consult state governments and employers.
And it is only then they take decisions. Especially if it is to increase EPFO accruals in ETF. You can also stay updated. Moreover this helps you with latest news on EPF. You can even check out process of EPF passbook download. However this is possible only when you follow rules. You can now check rules to Download EPF passbook to track and check EPF balance.
Final call on EPFO investment with ETF
You must wait till 27 May. As only then you will know about plans of CBT. In addition you will have idea of EPFOs decision on ETF. Last you have idea of decision of Finance Ministry on ETF investment. And till then you can check out EPF UAN member employee employer portal.