EPFO equity push: Stock returns more than 2x those of bonds, shows data

Retirement fund also invests in CPSE index, which has been a laggard among ETFs

The Employees’ Provident Fund Organisation (EPFO), the government’s premier retirement fund, is said to be considering an increase in its equity allocation to 25 per cent. It first began to invest five per cent of incremental inflows in equities starting 2015; that has since risen to 15 per cent. 

This comes amid government bond yields staying well below the returns that EPFO pays its members. Equity returns have been more than twice as much as those on bonds over the last few years. The average equity returns for key market indices over the last five years were 18 per cent. The