HomeFinance NewsEPFO likely to increase fund allocation to CPSE ETF, Bharat 22 from FY20: report

EPFO likely to increase fund allocation to CPSE ETF, Bharat 22 from FY20: report

The Employee Provident Fund Organisation (EPFO) is likely to increase its investment in the central government's two exchange-traded funds (ETFs), Central Public Sector Enterprises ETF and Bharat 22 ETF, from 2019-2020 onwards, reported Business Standard.

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By CNBC-TV18 February 21, 2019, 10:33:06 AM IST (Updated)

EPFO likely to increase fund allocation to CPSE ETF, Bharat 22 from FY20: report
The Employee Provident Fund Organisation (EPFO) is likely to increase its investment in the central government's two exchange-traded funds (ETFs), Central Public Sector Enterprises ETF and Bharat 22 ETF, from 2019-2020 onwards, reported Business Standard.



The EPFO could invest more than Rs 4,000 crore in the two ETFs next year, said the report citing an unnamed finance ministry official.

From August 2015 to December 2018, the retirement fund body has invested Rs 63,224 crore in the ETFs. Of this, only Rs 5,507 crore or 8.7 percent has been invested in CPSE ETF and Bharat 22 ETF. The rest have been invested in ETFs of SBI Mutual Fund and UTI Mutual Fund, said the report.

The return on investment for the above mentioned period, for EPFO, has been 12 percent from SBI Mutual Fund, 10.31 percent from UTI Mutual Fund, 1.9 percent from CPSE ETF, and 0.5 percent from Bharat 22 ETF, the report said.