EPFO's investment in corporate debt to reduce to 20%

In 2017-18, the EPFO is estimated to receive Rs 1.28 trillion as contribution from employees

The Employees’ Provident Fund Organisation (EPFO) will substantially reduce investing its incremental income in debt instruments due to paucity of corporate bonds in the market. The government had decided that EPFO will be mandated to invest a minimum of 20 per cent of its incremental corpus in debt-related instruments, against the present requirement of 35 per cent.

Labour and Employment Minister Santosh Gangwar had written to Finance Minister Arun Jaitley in October last year to reduce minimum investment limit in debt instruments following concerns raised by EPFO’s portfolio managers that it might deviate from its investment pattern. The finance ministry gave