Investing in Alternative Investment Funds (AIFs), Infrastructure Investment Trusts (InvIT) and other similar investment options, as well as a likely discussion of the interest rate for 2021- 2022, should be on the agenda for the next central council meeting. trustees of the Employee Provident Fund (EPFO). The meeting is scheduled for November 20.
A board member said: “The board will consider safer investments such as government-linked InvITs, which will broaden the investment basket beyond exchange-traded funds. Other options to take advantage of higher market returns would also be considered. The BCT can also discuss the interest rate for the current year based on the returns on its investments in the debt and equity market.
EPFO has offered an 8.5 percent interest rate for two years. Although this is the lowest rate offered in the past eight years, the finance ministry has pushed the pension fund agency to a lower rate.
In April, the Ministry of Labor notified changes in investment options to include units issued by Class I and II AIFs regulated by the Securities and Exchange Board of India (Sebi). EPFO may invest up to 15 percent of the equity investment according to the investment model notified by the central government and internal EPFO guidelines approved by the CBT. He had invested Rs 7,715 crore in equity until June 30 of this year.
The agenda for the meeting has not yet been released. The investment committee will meet prior to the Board meeting.