Employee Provident Fund Organization EPFO has achieved more than 20 per cent returns annually by placing the money of provident fund of the members in the stock market during the last two years. However, EPFO has recommended 8.55% interest on PF for this year i.e. 2017-18. Under current rules, EPFO can invest 15% of the investable PF fund in the stock market.
Return on investment in stock market more than 20%
According to the data released by the EPFO, the EPFO has invested a total of 37,667.38 crores in the exchange traded fund ie ETF between August 2015 to December 29, 2017. In this period, EPFO received a total return of 20.65% on ETF investment. In view of the improved return from the EPFO stock market, EPFO can ask for increasing the limit of investment in the stock market. This can give better interest on PF.
Most investment investment in SBIBI Mutual Fund
EPFO has the highest 27,852 89 crore invested in SBI Mutual Fund EPFO received a total return of 19.96 percent on this investment. After this, the EPFO has invested the second largest Rs 5,982.14 crore in the UTI Mutual Fund. UTI Mutual Fund received a total return of 24.71% on investment. Total investment of 1807.81 crores in EPFO Central Public Sector Enterprises Here's the return of 21.08 percent in the last two years.
India gets highest return in 22
EPFO has invested a total of Rs 2,024.75 crores in 22 exchange traded funds in India. With investment in India 22, EPFO received the highest return of 71.56 per cent.
ETF starts at 5%
EPFO has started investing in ETF from August 6, 2015. At the beginning, ETFs had a total of 5 per cent investment. At the beginning, the EPFO was allowed to invest only in the SBI Mutual Fund ETF. Later, the central government had also given permission to invest in UTI Mutual Fund. The central government later increased the limit of investment in the stock market to 10 per cent and after this it increased to 15 per cent.
EPFO manages the funds of more than 8 lakh crores of its members. At present, the number of active members of EPFO is about 5 million.
Read Also:- Live Commodity Tips for today’s market