News Live: EPFO meet today to decide how to add ETFs to user a/cs
EPFO meet today to decide how to add ETFs to user a/cs
The Employees Provident Fund Organisation’s (EPFO) central board of trustees (CBT) will meet in New Delhi today to decide an exit policy for its equity investments but will not take a decision on the EPF interest rate for 2017-18 at this meeting, reports Mint. “The CBT will take up the exit policy of EPFO’s equity investments and whatever they decide, the fund managers of EPFO will follow,” Labour Secretary M Sathiavathy said. He said the board will not take up the PF interest rate issue this time and that it may be taken up sometime in January.
At present, EPFO invests 15% of its annual accruals in exchange traded funds (ETFs). It is yet to decide how it plans to credit the benefits or losses to subscribers’ accounts. EPFO has invested over Rs 30,000 crore via ETFs since it started investing in stocks in August 2015-16. One of the options is accruing units of ETFs to subscribers’ accounts. Another option is keeping cash and equity components separately—meaning that consent to sell off ETF units is required from a subscriber withdrawing EPF savings. It is also studying whether it can offer an option to subscribers to opt for equity exposure beyond the 15% cut-off, a government official said.