look news india
Have you ever thought about the money you save? Where did it go? What does the government do with that money? Lok Sabha member T. Sumathi alias Thamizachi Thangapandia has asked the government whether EPFO has made significant investments in debt instruments and exchange traded funds (ETFs). This information has been given by the government.
Do you work in government or private sector?
You should be connected to PF i.e. Provident Fund. Every company deposits PF money as salary while staying within the limits of government rules. Half of it has to be paid by the company and the other half by the employee from his salary. That’s it, the basics about PF. Have you ever thought about the money you save? Where did it go? What does the government do with that money?
Lok Sabha member T. Sumathi alias Thamizachi Thangapandia asked the government whether EPFO has made significant investments in debt instruments and exchange traded funds (ETFs) and if so, the government should provide details about the same. Its details were presented by the government.
Government gave information
In response, Minister of State for Labor and Employment Shobha Karandlaje said that investments are made in EPFO as per the investment pattern prescribed by the Finance Ministry and the guidelines issued by the Central Board of Trustees (CBT), EPF. EPFO invests in both debt instruments and ETFs as per the prescribed pattern prescribed by the government.
Which companies are invested in?
The institution started investing in the ETF in August 2015 after receiving approval during the 207th CBT meeting held on March 31, 2015. As of March 31, 2024, the total funds managed by EPFO will be Rs. Out of which Rs 24.75 lakh crore. Investment of Rs 22,40,922.30 crore in debt instruments. An investment of Rs 2,34,921.49 crore was made in ETF.
• In 2017-18 Rs. Investment of Rs 22,765.99 crore
• In 2018-19 Rs. Investment of Rs 27,974.25 crore
• In 2019-20 Rs. Investment of Rs 31,501.11 crore
• In 2020-21 Rs. Investment of Rs 32,070.84 crore
• In 2021-22 Rs. Investment of Rs 43,568.08 crore
• In 2022-23 Rs. Investment of Rs 53,081.26 crore
• In 2023-24 Rs. Investment of Rs 57,184.24 crore
• By 2024-25 (by October) Rs. An investment of Rs 34,207.93 crore has been made.
Your money is not invested directly in shares
The government has clarified that EPFO does not invest directly in individual shares, whether listed or not. Instead, all equity investments are made through ETFs that reflect benchmark indices or are linked to government disinvestment initiatives. So the money the government earns from PF. This is done through ETFs and debt instruments.