Testing times for investors? CPSE, Bharat 22 ETF yield EPFO 1.89% & 0.48% as of Dec-end

EPFO had in January 2017 decided to invest in select exchange traded funds (ETFs) to help the government achieve its disinvestment target.

Just two days to go before it announces its annual EPF interest rate, the Employees’ Provident Fund Organisation (EPFO) is staring at subpar yields on its equity investments in CPSE ETFs and Bharat 22 ETF, the Mint reported.

As of December 31, its investments in CPSE ETFs and Bharat 22 ETF have yielded just 1.89 percent and 0.48 percent, respectively. This spells bad news for its over six crore subscribers.

EPFO had in January 2017 decided to invest in select exchange traded funds (ETFs) to help the government achieve its disinvestment target.

In August 2015, it began with a mandate of investing 5 percent of its investible deposits in the equity linked scheme. The proportion was increased to 10 per cent in 2016-17 and 15 percent subsequently in 2017-18.

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