EPFO records negative returns on its 1 lakh crore investment

The Employees’ Provident Fund Organisation (EPFO) records negative returns on its investments of Rs 1 lakh crore in exchange-traded funds (ETFs).

The Employees’ Provident Fund Organisation (EPFO) records negative returns on its investments of Rs 1 lakh crore in exchange traded funds (ETFs).

The total 5 year returns worth Rs 1.03 lakh crore is -8.3%, according to a report. EPFO’s return on investments in the Bharat 22 ETF is -19.73%. 

The retirement fund manager’s investments in Central Public Sector Enterprises (CPSE) ETF has yielded a -24.36% return.

“Investments to achieve goals of government have their shortcomings. The retirement fund body needs to realize there is a difference between educated investors investing by choice, and uninformed workers’ money getting invested by default through avoidable ETFs,” a member of the EPFO board said as per the Mint report.

The EPFO invests 85% in debt instruments and 15% in ETFs. The matter is likely to be discussed in the central EPFO meeting this week. 

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