EPFO is expected to increase equity investment cap to 20%

19 Jul 2022 , 10:34 AM

The retirement fund organization EPFO is likely to adopt a proposal this month to increase its equity investments from the existing cap of 15% to up to 20% of the investible deposits. According to a source, the idea is anticipated to be discussed and approved during the EPFO trustees’ meeting set for July 29 and 30.

In equity or equity-related programs, EPFO can now invest 5 to 15% of the investable deposits. The Finance Audit and Investment Committee, an advisory body to the Employees’ Provident Fund Organization (EPFO), has examined and accepted the request to change the maximum to 20%. (FAIC).

The EPFO’s top decision-making body, the Central Board of Trustees (CBT), will review and approve the FAIC’s proposal.

The suggestion of the FAIC to increase the investment in equity and equity-related schemes from the current 5-15 percent is expected to be approved by the Central Board of Trustees (CBT), which is presided over by the Union Labor Minister, the source added.

FIAC, a subcommittee of CBT, EPF, has recommended the proposal to increase investment in equity and related investments in category IV of the Pattern of Investment from 5-15 percent to 5-20 percent for consideration of CBT, EPF, according to Minister of State for Labour and Employment Rameshwar Teli’s written response to Lok Sabha on Monday.