EPFO could invest part of its corpus in infrastructure sector: Report

The EPFO recently allowed its members to avail second non-refundable Covid-19 advance. This was done to meet the financial need of members during the Covid-19 pandemic.

The Employees’ Provident Fund Organisation (EPFO) may start investing a portion of its annual deposits in infrastructure investment trusts (InvITs), Livemint reported.

The EPFO gives retirement benefits to employees. (Mint File Photo)

The retirement fund manager has so far been investing in bonds, government securities, and exchange-traded funds (ETFs). But the revised investment plan could help boost India's investment in infrastucture and diversify the EPFO's investment basket, according to Livemint.

An InvIT is an alternative investment fund (AIF) that works like mutual funds and is regulated by the Securities and Exchange Board of India (Sebi).

Last month, the Union Cabinet approved extension of last date of registration under the Aatmanirbhar Bharat Rojgar Yojana (ABRY) by nine months till March 31, 2022, to give a boost to fresh hiring amid the pandemic. This scheme is being implemented through EPFO.

Under the ABRY, establishments registered with EPFO and their new employees drawing monthly wage of less than ₹15,000 are being benefited if the establishment recruits new employees or those who lost their job between March 1, 2020, and September 30, 2020.

Under ABRY, the government is crediting for two years both the employees' and employers' share (24 per cent of wages) or only the employees' share (12 per cent of wages), depending on the strength of EPFO registered establishments.