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The Employees’ Provident Fund Organisation (EPFO) plans to raise exposure to exchange traded funds (ETFs) from 10 per cent to 15 per cent in the current financial year. The Board of Trustees is likely to discuss the proposal at its next meeting.
Addressing a press conference here, Union Minister of Labour Bandaru Dattatreya said the returns from ETFs were good over a long period of time.
He said the government plans to send a team to countries like Germany, Japan, South Korea and Australia to study the quantum of exposure of similar bodies to the ETFs and its impact. In some of these countries the exposure was higher.
The EPFO had begun investing in ETFs from 2015 with a 5 per cent exposure. Dattatreya had hinted that this would be increased in phases after studying the performance. The proposal to increase the exposure would be sent to the Finance Minister for approval.
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