New Delhi: Unfazed via unions’ opposition and bad returns on stock market investments, Labour Minister Bandaru Dattatreya on Tuesday hinted at growing investment of the personnel‘ Provident Fund agency(EPFO) in exchange-traded finances (ETFs) for this monetary yr from 5 in keeping with cent presently.
however, he did now not specify the quantum of increase in investments this yr by using the PF body(EPFO) from 5 in line with cent of its investible deposits parked ultimate fiscal in change traded budget(EPFs).
“At present it is five in keeping with cent in trade Traded budget (ETFs). In long phrases it’s milesprofitable. in this context we need to see it. we will keep the CBT (central Board of Trustees) assembly(where this proposal could be mentioned). but i’m assured that it’s going to move past five per cent,” he said at a press convention on projects taken by using the Labour Ministry in the closing years of NDA regime.
The CBT is the apex decision making body of EPFO, that is headed by way of the Labour Minister.
alternate unions have already lodged protests against parking EPFO’s price range in stock market and submitted their dissent observe on the problem in earlier conferences of the CBT.
requested approximately the unions’ competition, the minister said, “we can listen to the CBT members.they will communicate on it (whether to growth it or not). but the very last choice might be of the Labour Ministry. i’m the chairman of CBT. In ability of Chairman i’m able to take a decision.”
EPFO has invested Rs 6,788 crore in ETFs to this point when you consider that August last year and hasgot a go back or yield of one.sixty eight consistent with cent on these funding, Labour Secretary Shankar Aggarwal said.
As in keeping with the earlier estimates of the EPFO, it earned a terrible go back of nine.54 in step withcent on its Rs 5,920 crore investment in ETFs from August 6, 2015 to February 29, 2016.
The marketplace value of investments of Rs five,920 crore inside the ETFs in 2015-16 become Rs five,355 crore as of February 29, 2016, as according to an evaluation of fairness investment by way of EPFO.