Provident Funds Entering Equity Market
The Employees’ Provident Fund Organisation (EPFO) has entered the equity market through investment in Exchange Traded Funds (ETFs).
The Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) has approved the proposal of investing in ETFs after considering the possible risk associated with the investments.
The Government has not provided any guarantee for such investments in the stock market as investment in such instruments are subject to market movements.
Some of the trade unions have expressed their reservations over the decision to invest in equity as they are concerned about the risk associated with the investments in stock market.
This information was given by Shri Bandaru Dattatreya,the Minister of State (IC) for Labour and Employment in reply to a question in Rajya Sabha today.
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