If you are going to invest wisely in a pool of equity then surely there is not much of a risk, said Mr. Shankar Aggarwal. He also said that as on July 31, 2016, we got a return of over 12 percent on equity as compared to 8 or 7.5 percent on G-Secs, , said Mr Aggarwal while inaugurating 'National Conference on Social Security & Role of Equity Market,' organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM).
The Employees' Provident Fund Organisation (EPFO) started investing in exchange traded funds (ETFs) in August last year and has invested Rs 7,465 crore till June 30, 016, said Mr. Aggarwal
The Employees' Provident Fund Organisation can invest up to 15 percent of its investible deposits in equity or equity related scheme, the body had decided to park 5 percent of its available funds in ETFs to start with.
We cannot evaluate the performance of equity on the basis of one, two or three months. When we invest in equity, we invest for 20 or 30 years," said Mr. Aggarwal while addressing the meeting.
The Employees' Provident Fund Organisation (EPFO) started investing in exchange traded funds (ETFs) in August last year and has invested Rs 7,465 crore till June 30, 2016. EPFO can invest up to 15 percent of its investible deposits in equity or equity related scheme, the body had decided to park 5 percent of its available funds in ETFs to start with.
Mr. Aggarwal said, social security is very important tool to improve the productivity, to improve the level of motivation, passion and commitment. When they grow old and unable to perform any productive work, at that point of time we have to take care of them.
We will enable to create one seamless platform which will enable every citizen from organized sector or un-organized sector to get on board and to get advantage or benefits of social security, said Mr. Shankar.
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Mr. Aggarwal further said, we are also going to adopt central architecture which will be from 30th September and am sure thereafter everything will be transparent, all certificates will be delivered online and decision to invest in equity will be more transparent.
Dr V.P. Joy, Central Provident Fund Commissioner (EPFO) said, the labour and employment ministry is trying to achieve the social security objective. The mission of social security cannot be archived by one group, it's a team work. I am happy that ASSOCHAM joined today in focusing on the equity markets and request ASSOCHAM to come up with other aspects.
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