Bandaru Dattatreya,Minister of State forLabour and Employment | Photo Credit: P_V_SIVAKUMAR
The process to invest Employee Provident Fund (EPF) money into equity markets has begun. It will be done in five tranches this year and a total of ₹6,000 crore will be invested by March 31, 2016, in the first phase.
“We will invest in tranches of about one percentage point each (of the total kitty with PF managers) in the next few months. Initially, we are planning to invest up to 5 per cent of the total kitty of ₹8.30 lakh crore funds,” Union Minister of Labour Bandaru Dattatreya told BusinessLine here on Monday.
The government is looking to invest 5-15 per cent of the EPF reserves in equities. “It will give them better returns. It can give up to 10 per cent as against the 8.75 per cent that we are giving to the PF account holders,” he said.
He said the Ministry made a presentation to different stakeholders, including State Governments and leaders of employees unions. SBI and HSBC will be among those overseeing the funds invested in the markets.
Initial loss, long-term gainAsked whether the hard-earned money of employees would be safe, the Minister said investments were long-term in nature. “There may be initial losses but in the long run it would give profits,” he said.
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Published on July 27, 2015
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