Liquid MFs may get Rs 20k crore from EPFO
DSIJ Intelligence / 28 Mar 2017
It is expected that ten liquid mutual funds carrying a minimum of AA+ ratings will be selected by the fund managers of CBT. The tenure in liquid MFs will be of 30 days.
According to certain media reports, the Employees' Provident Fund Organisation (EPFO) will be investing Rs 20,000 crore or 10 per cent of its investible deposits on annual basis in liquid mutual fund schemes. The annual deposits are likely to be made starting FY18.
The decision could be approved by Central Board of Trustees (CBT) , EPFO’s apex decision, in its meeting scheduled on March 30.
It is expected that ten liquid mutual funds carrying a minimum of AA+ ratings will be selected by the fund managers of CBT. The tenure in liquid MFs will be of 30 days.
This decision to invest in liquid mutual funds will facilitate parking money in liquid mutual funds schemes for the first time as currently the funds are being deployed in government bonds and corporate bonds. The fund allocation for the EPFO is as follows : 50% is invested in government bonds, 40% in corporate bonds and 10% in equities.
There is also a chance of increase in equity allocation to 15% from 10%.
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