scorecardresearchExchange-traded funds added over ₹67,000 crore to EPFO’s kitty

Exchange-traded funds added over 67,000 crore to EPFO’s kitty

Updated: 10 Aug 2022, 09:09 AM IST
TL;DR.
The 1.5 trillion invested by the pension fund body is now worth 2.2 trillion. It has made an annual ETF investments of 36,000 crore since 2019-20. Read further for more details
 The EPFO began to invest in equity ETFs in August 2015

 The EPFO began to invest in equity ETFs in August 2015

The Employees’ Provident Fund Organisation (EPFO) has earned 67,619.72 crore from its entry into exchange-traded funds (ETFs), Business Standard reported.

The pension fund body had invested a sum of 1.59 trillion, which is now worth 2.27 trillion, according to the data shared in Parliament recently.

Equity ETFs usually look to closely track the returns of benchmark indices. They do not seek to actively buy and sell their holdings to generate higher returns like an actively managed fund.

They are considered a low-cost alternative to more expensive active funds, and do not have the same risk of underperforming the benchmark index.

The EPFO began to invest in equity ETFs in August 2015. The latest Lok Sabha (LS) reply provided data over recent years. It revealed that around 1.2 trillion of the overall 1.59 trillion worth of ETF investments have come since 2019-20.

The EPFO has invested an average of nearly 36,000 crore every year in ETFs. It has already invested 12,199.26 crore in the first three months of 2022-23.

Wealth advisors suggest higher allocations amid pushback since it would result in a more sustainable savings model for the retirement body.


First Published: 10 Aug 2022, 09:09 AM IST