Friday, June 26, 2015

EPFO TO INVEST IN ETFs from NEXT MONTH

Employees Provident Fund(EPFO) will start investing  in  stock markets from the coming month as part of its plan to put in as much as Rs 5000 crores in Exchange Traded Funds(ETFs) by the end of this Fiscal. The Finance Ministry had asked EPFO to consider investing a part of its corpus, (between 5% and 15% of PF money) in ETF. CBT in its meeting has decided and Labor Ministry has given  orders to place at least 5% of  (EPF corpus) funds in the equity. This year will invest only in exchange traded funds (ETF).EPFO expected to get about Rs about 1 lakh crore as incremental deposite during this current financial year,thus they would be able to invest Rs 5,000 crores as 5 % of Rs 1 lakh crore.Finance thinking about up to 15% further in the stock exchange.
It’s notable that Investment of the PF money in the stock market is always sensitive to using its decision.
Whatever its a another reformation of Abrupt decision of Central Government , going to the against of All Excuse-objections to the content of workers .Mostly it was somewhat a surprise to all, the way that supposed to investments Starting from the next month.
Service holder Provident Fund maintainer agency as in charge of the EPFO fund now fleet of more than 6 million.Even about one lakh crore will be deposited to the current financial year too.Will it be beneficial or looser in future?? Govt.thought that, Presently employees are getting interest from PF as 8.75%.It is tough to get more than that of interest.interest. Thats why its not possible to savings more through the over coming of inflation/increasing the price value and without fixing one part of the provident fund money in the stock market. Govt though that,  many of the common salary paid service holders did not have the enough to leverage the fund in the share market . So if there is a part of the money goes to stock exchange as compulsory of  PF money , it will gain after all industry sources and as well as the service holders.
But in fact we the ordinary peoples are earning by sweating and the corporate communities want to gambling as make us serious about our earning money through the Government and to stimulate the interest of the share market .Labor union BMS of BJP alliance also opposition of this policy. 
BMS general secretary Brijesh Upadhaya said that, “ the savings will not be in the VAIN,government take the responsibility for that. If not, there is no need to risk the stock market turnover.” AITUC's general secretary Gurudas Dasgupta said, '' The market is largely speculative. As a result, the last thing of his retirement will be uncertain also.”
CITU Leader Tapan Sen said , '' Many countries have already sunken the PF money. '' Although  investing the PF money of central government employees to turnover in the share market ,how much  who want to take the risks, and they get a chance to fix it. And not so here.” 

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