EPFO to invest 5% of funds in equity market

In a major policy shift, the Central Board of Trustees of the Employees’ Provident Fund Organisation has decided to park 5 per cent of its funds in the equity market.

At a press conference here on Saturday, Union Labour Minister Bandaru Dattatreya said the decision was in line with the suggestions made by Finance Minister Arun Jaitely that the EPFO invest up to 15 per cent of its funds in the equity market.

Mr. Dattatreya said the investment would fetch higher returns and help raise the interest rate offered to employees’ contributions.

To start with, one per cent of the funds would be invested in the equity market this month and the amount would be gradually increased to 5 per cent by the end of the financial year.

In another major announcement, the Minister said the Central Board of Trustees of the Employees State Insurance Corporation, at its latest meeting, decided to invest funds available with it from the contribution of employees through portfolio managers on the lines of the EPFO.

Employees’ interests would be the priority of the EPFO and care would be taken in the equity investments, the Labour Minister added.

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