Value of EPFO's Rs 1.59-trn investment in ETFs rises to Rs 2.26 trn: Govt

The EPFO invests 85% of the funds in debt instruments and 15% of the investment is made in ETFs, as per the investment pattern notified by the government

Retirement fund body EPFO has invested Rs 1,59,299.46 crore in Exchange Traded Funds (ETFs) till March 2022 and its notional market value of these investments was Rs 2,26,919.18 crore, Parliament was informed on Monday.

The EPFO has been investing in ETFs since August 2015. Initially, the body decided to invest 5 per cent of its investible deposits into stock markets. Later, the proportion was increased to 10 per cent in 2016-17 and 15 per cent in 2017-18 and onwards.

Union minister of state for labour and employment Rameshwar Teli stated in a written reply to the Lok Sabha that the Employees' Provident Fund Organisation (EPFO) has invested Rs 1,59,299.46 crore in ETFs till March 31, 2022.

The reply showed that the notional market value of the EPFO's investment in ETFs stood at Rs 2,26,919.18 crore as on March 31, 2022.

The minister also told the House that the EPFO invested Rs 12,199.26 crore in ETFs in April-June period this year, while the total investment (in debt and equity) was Rs 84,477.67 crore.

The body had invested Rs 43,568.02 crore in 2021-22, Rs 32,070.84 crore in 2020-21 and Rs 31,501.09 crore in 2019-20 in ETFs.

The EPFO invests 85 per cent of the funds in debt instruments and 15 per cent of the investment is made in ETFs, as per the investment pattern notified by the government.

The investment in ETFs is made based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 indices, Teli said.