Zee Media Bureau
New Delhi: In a big boost to equity markets, fund-flush Employees Provident Fund Organisation (EPFO) Thursday entered Dalal Street through exchange-traded fund route.
This is the first time that the EPFO, in its 64-year history, has invested in the equity markets.
Here are five things that you would want to know.
1. EPFO will have an initial corpus of Rs 5,000 crore, which could go up to nearly Rs 15,000 crore next year.
2. The first investment would be made through SBI Mutual Fund's two index-linked ETFs -- one to the BSE's Sensex and the other to NSE's Nifty.
3. With increasing its investment limit to 15 percent, the EPFO could become the second largest domestic institutional investor in capital markets after market giant LIC.
4. Labour Ministry expects that the return to the 4.67 crore subscribers of the EPFO will higher than the existing return of 8.75 percent in the long-term.
5. EPFO invests Rs 1 lakh crore of its over Rs 6.6 lakh crore of assets into various government securities.
With PTI Inputs
