EPFO board assembly: FY22 charge, funding choices possible in focus

Investment in different funding funds (AIFs), infrastructure funding trusts (InvITs) and different comparable funding choices, together with a probable dialogue on the rate of interest for 2021-22, are anticipated to be on the agenda of the following assembly of the Central Board of Trustees of the Employees’ Provident Fund Organisation (EPFO). The assembly is scheduled for November 20.
A board member mentioned, “The Board will consider more secure investments such as government-linked InvITs, which will broaden the investment basket beyond exchange traded funds. Other options to tap into higher returns from the market would also be considered.” The CBT may additionally focus on the rate of interest for the continuing monetary yr primarily based on the returns of its investments from the debt and fairness market.
The EPFO has been offering an 8.5 per cent rate of interest for the final two years. Despite being the bottom charge provided within the final eight years, the Finance Ministry has been nudging the retirement fund physique for a decrease charge.

In April, the Labour Ministry had notified adjustments in funding choices to incorporate models issued by Category I and Category II AIFs regulated by the Securities and Exchange Board of India (Sebi). The EPFO can make investments as much as 15 per cent of funding in fairness as per the sample of funding notified by the central authorities and the inner tips of the EPFO authorized by the CBT. It had invested Rs 7,715 crore in fairness until June 30 this yr.
The agenda of the assembly is but to be circulated. The funding committee will meet earlier than the Board assembly.