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EPFO Update: If you are an employee of an organized sector, then your PF must be deducted. Do you know where the government invests your PF money? Recently, the Central Government was asked for information about the investment of PF money by the Employees Provident Fund Organization (EPFO) in the last 5 years. Lok Sabha MP T Sumati had sought information about EPFO's investment in debt instruments and exchange-traded funds (ETFs). In response to this, Minister of State for Labor and Employment Shobha Karandlaje said that EPFO's investments are as per the investment pattern prescribed by the Ministry of Finance and the guidelines issued by the Central Board of Trustees (CBT).

EPFO continuously invests in the stock markets through exchange-traded funds (ETFs). Apart from this, EPFO also allocates funds from time to time in specially designed ETFs for the disinvestment of stakes in different corporate entities of the Government of India.

Investments in debt securities and ETFs
The EPFO follows the investment pattern prescribed by the government, which includes investments in both debt securities and ETFs. The decision to start investing in ETFs was taken in the 207th CBT meeting on March 31, 2015, and the first investment was made in August 2015.

EPFO does not invest in individual stocks

As of March 31, 2024, EPFO manages a total corpus of Rs 24.75 lakh crore, out of which Rs 22,40,922.30 crore is allocated to debt instruments and Rs 2,34,921.49 crore in ETFs. The government has also given information about EPFO's investments in the stock market and related products in the last 7 years and the current financial year. The government has clarified that EPFO does not directly invest in any individual stock.

Investment in ETFs by EPFO
2017-18: Rs 22,765.99 crore
2018-19: Rs 27,974.25 crore
2019-20: Rs 31,501.11 crore
2020-21: Rs 32,070.84 crore
2021-22: Rs 43,568.08 crore
2022-23: Rs 53,081.26 crore
2023-24: Rs 57,184.24 crore
2024-25 (till October): Rs 34,207.93 crore

What are ETFs? ETFs are an investment option. Investments are made in the stock market through exchange-traded funds (ETFs). Investments are made in a set of shares through ETFs. In the past years, ETFs have made huge money for investors. Like shares, ETFs are bought and sold on stock exchanges.

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