EPFO Investment: Employees Provident Fund Organization (EPFO), which runs a social security scheme for organized sector employees, provides its subscribers with returns based on investments in debt instruments and exchange traded funds in the stock market. Decides the EPF rate annually. But does EPFO also invest money directly in the stock market? Which are the Blue-Chip Shares which are included in EPFO’s portfolio? Obviously, every investor investing in the stock market will be curious to know whether shares of any blue chip company are present in the portfolio of EPFO. This question was asked to the government in the Lok Sabha during the winter session of Parliament. And you will be surprised to hear the answer given by the government!
Question to the government in Parliament
In the Lok Sabha, the Ministry of Labor and Employment under which EPFO comes, this question was asked whether EPFO has invested huge amount in Debt Instruments and Exchange Traded Funds (ETF)? How much has EPFO invested in the stock market and related products in each of the last seven years and the current year? Also the question was raised that how much EPF amount has been invested in the shares of blue chip companies in the last five years?
Investment of Rs 2.35 lakh crore in ETF
Answering this question, Minister of State for Labor and Employment Shobha Karandlaje said, according to the pattern of investment notified by the Department of Financial Services of the Finance Ministry on March 2, 2015, the Central Board of Trustees, EPF. EPFO invests under the guidelines issued by EPFO. EPFO has invested in both debt instruments and exchange traded funds. Investment in ETF started from August 2015. EPFO has invested Rs 22,40,922.30 crore in debt instruments. This also includes the amount which has been kept in the Public Account of India. EPFO has invested Rs 2,34,921.49 crore in exchange traded funds.
EPFO has shares of which blue chip company?
On the question related to investment of EPF amount in the shares of blue chip companies in the last five years and investment in the share market in the last seven years, the Minister of State for Labor and Employment said, EPFO has invested in the shares of any listed and unlisted companies in the equity market. Not directly invested in. That means there are no blue chip shares in EPFO’s portfolio.
Shobha Karandlaje said that EPFO does not invest directly in any stocks in the equity market. EPFO invests money in the stock market through exchange traded funds based on BSE-Sensex and NSE Nifty 50 indices. EPFO has also invested in Bharat 22 ETF and CPSE Indices. He said that till the month of October of the current financial year 2024-25, EPFO has invested Rs 34,207.93 crore in ETF.
EPFO gives interest on EPF every year!
Employees Provident Fund Organization pays annual interest on the hard-earned money deposited by employees in the Provident Fund. As of March 31, 2024, a corpus of Rs 24.75 lakh crore was accumulated in various funds managed by EPFO. 8.25 percent EPF rate was declared in the financial year 2023-24. The EPF rate is yet to be announced for the current financial year 2024-25.
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