EPFO's Rs 47,000-cr ETF Investments Earn 16.07 Pc Return

New Delhi, June 20 (PTI) Retirement fund body EPFO has earned a 16.07 per cent return on Rs 47,431 crore investments in exchange traded funds (ETFs) till May this year.

However, this return is notional because earning can be realised only after liquidation of these investments, said a senior official. The Employees' Provident Fund Organisation (EPFO) has invested Rs 47,431.24 crore till May 31, 2018, recording a 16.07 per cent return, the official added.

The EPFO had started investing in ETFs in August 2015 with a mandate of investing 5 per cent of its investible deposits in the equity linked scheme. The proportion was increased to 10 per cent in 2016-17 and 15 per cent subsequently in 2017-18.

The body got the maximum appreciation on its investments in UTI Mutual Fund for which rate of return was 17.01 per cent with total value at Rs 8,995.04 crore. This was followed by 16.07 per cent return on Rs 34,603.64 crore invested in SBI Mutual Fund.

The CPSE ETF gave a return of 7.94 per cent at an investment of Rs 1,860.81 crore whereas an investment of Rs 2,024.75 crore in Bharat 22 fetched a return of Rs 8.46 per cent.

The EPFO has planned to credit ETF investments in the PF accounts this fiscal only and thereafter, it would give an option to the subscribers to hike or cut investments in ETFs from their funds.

The EPFO trustees had already approved the accounting policy for the purpose of crediting ETF investments into PF account. The body is in the process of developing and testing the software for the purpose.

The official said it would be possible to explore possibility of giving an option to subscribers to hike or cut investments in ETF only after crediting ETF investments into the subscribers account.

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