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EPFO Doubles Equity Exposure: 15% of PF Cash Now in Stocks
EPFO now invests 15% of annual member contributions in equity ETFs, double the allocation of seven years ago. Here is how the retirement fund breaks down its ₹12 lakh crore corpus.
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The Employees' Provident Fund Organisation has doubled its equity investments over the past seven years, putting about 15% of annual member contributions into stock market-linked exchange-traded funds (ETFs). That means roughly ₹0.15 of every ₹1 deposited in a subscriber's provident fund account now goes into equities, a shift from a near-zero allocation a decade ago.
The retirement fund manager invests the remaining 85% in debt instruments, with 45% to 65% of that portion required to be in government securities and 20% to 50% in listed debt instruments. A further 5% can be parked in short-term debt, provided it carries a minimum A1+ rating from at least two credit rating agencies registered with the market regulator.
For equity exposure, EPFO invests in ETFs that track the BSE Sensex and NSE Nifty 50 indices. It has also allocated capital to ETFs built specifically for government disinvestment, including those tracking the Bharat 22 and CPSE indices, the retirement body said in a notification.