InvestorQ : Has the EPFO investments in equities been profitable for the provident fund holders?
prachi Patwardhan made post

Has the EPFO investments in equities been profitable for the provident fund holders?

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sara Kunju answered.
2 months ago
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EPFO has invested a total of Rs159,300 crore in exchange traded funds or ETFs till March 2022. It may be recollected that when the government allowed the EPFO to invest in equities, the condition was that they would only invest through ETF route. Currently, the notional market value of the amounts invested stood at Rs226,919 crore, which is an appreciation of almost 40% on the total principal invested by the EPFO. That sort of justifies the decision to allow the EPFO to also invest in equities in the Indian context.

EPFO had started invested in equities via the ETF route only from 2015 onwards. Since then, the permissible annual equity investment limit for EPFO has been raised from 5% to 10% and again to 15% of incremental flows in the fiscal year FY18. While raising the limit to 20% is being debated, there is no consensus on the same. The EPFO has invested in ETFs to the tune of Rs43,568 crore in FY22, Rs32,071 crore in FY21 and Rs31,501 crore in FY19. ETF investments by EPFO are based on Nifty, CPSE and the Bharat-22 indices.

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