While replying to a question raised by Lok Sabha lawmakers including Ravi Kishan and Manoj Tiwari, the Minister of State for Ministry of Labour & Employment Rameshwar Teli said, "Employees’ Provident Fund Organisation (EPFO) invests 85 per cent of the Funds in Debt instruments and 15 per cent of the investment is made in Exchange Traded Funds (ETFs), as per the investment Pattern notified by the Government."
The MoS went on to add that the investment in ETFs is made based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 Indices. The details of equity investment for the last three years and the current year are as under:
Financial Year Amount invested in ETF Total amount (Debt & Equity) invested
2019-20: ₹31,501.09 crore and ₹2,20,236.47 crore
2020-21: ₹32,070.84 crore and ₹2,18,533.89 crore
2021-22: ₹43,568.02 crore and ₹2,89,930.79 crore
2022-23 (up to June 2022): ₹12,199.26 crore and ₹84,477.67 crore.
The details of cost price of investment in ETF till 31.03.2022 and Notional Market Value [as per Net Asset Value (NAV)] on 31.03.2022 is as under:
Cost price of amount investment in ETF as on 31.03.2022 Notional Market value (as per NAV on 31.03.2022) ₹1,59,299.46 crore and ₹2,26,919.18 crore.
Ten member parliaments from the Lok Sabha including Gorakhpur Lok Sabha MP Ravi Kishan and North East Delhi Lok Sabha MP Manoj Tiwari had asked an unstarred question from the ministry citing, ".....whether Employees’ Provident Fund Organization (EPFO) has taken a decision to invest a portion of its annual deposits in share market and related products, if so, the total amount invested in Share market and related products by EPFO during each of the last three years and the current year..."
While replying to the question, MoS Rameshwar Teli said, "The investment is made through Portfolio Managers and ETF Manufacturers appointed by CBT, EPFO for such purpose," adding, "The Financial Consultant of EPFO and the External Concurrent Auditor monitor all the investments made by the Portfolio Managers and ETF Manufacturers to confirm that they are in accordance with the Pattern of Investment notified by the Government and the Investment Guidelines approved by the CBT, EPFO from time to time."
