EPFO gets approval to park 5% of annual deposits in InvITs and other alternative funds

Employees’ Provident Fund Organisation (EPFO), its the meeting of its Central Board of Trustees (CBT), has approved measures to invest up to 5 % of its annual deposits in infrastructure investment trusts (InvITs) and other alternative funds. This investment will offer diversification to the EPFO’s investment basket.

The CBT empowered Finance Investment and Audit Committee (FIAC) to decide upon the investment options, on a case-to-case basis, for investment in asset classes included in the Pattern of Investment notified by the Centre. However, the board has also decided to focus only on government-backed alternatives, which are category one funds like public sector InvITs and bonds. The AIFs are regulated by the Securities and Exchange Board of India (SEBI).