EPFO or Employees Provident Fund Organisation has been looking at ways to invest so that there are good returns in future. Moreover this return of EPF investment is going to benefit people, EPF subscribers. This is also one of the latest news on EPF today. But before giving away some share of Employees Provident Fund Organisation to ETF, authorities will check all things.
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What is ETF meaning?
ETF full form is Exchange – Traded Fund. Actually ETF is in to trading and has similar work such as stock exchange. This exchange – traded fund is investment fund that trades on stock exchanges. It has assets as well. While these assets are generally bonds or commodities or even stocks.
Credit ETF to EPF account
Above statement is one of the many reasons that EPFO or the retirement body fund focussed on investing in ETF. However only after proper planning and discussing various issues this retirement body fund will take any action. This is why EPFO took advice from CAG or Comptroller and Auditor General as well.
Know Pradhan Mantri Rojgar Protsahan Yojana.
Approval of Labour Minister
When CAG agrees to all decisions in ETF EPFO report or giving shares, then only authorities will take next step. And this next step will be to get approval from the Minister of Labour and Employment Bandaru Dattatreya.
Even V P Joy, Commissioner of Central Provident Fund told the press that Comptroller and Auditor General is reviewing all things before it presents its final report to Labour Minister Mr. Dattatreya. Besides there is a CBT meeting probably in next month and this would be the best time to discuss features of this investment.
EPFO investment in ETF
Though there has been continuous investment of EPFO in Exchange – Traded Funds from August 2015 but provident fund organisation did not take returns. On other hand this investment was mostly 5 % only and that too under ‘investible deposits in stock or products related to stocks’. But due to change in decision this investment in ETF increased to 15 %.
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You also understand that this raise in exchange traded fund investment is only for current fiscal. Now this plan on investing EPF share of members would credit to accounts of EPF members. As a result it would be a win – win situation for all people.
Things to know about ETF investment
Apart from above things if authorities and especially Labour Minister Bandaru Dattatreya allows such investment then provident fund members can easily take loans. They also will be able to use ETF units.
Thus there are many advantages attached here. However you have to wait for next Central Board of Trustees meeting as it is at that time that authorities take final decision on EPF investment in ETF.
Check EPFO UAN login member portal.