The Employees Provident Fund Organisation (EPFO) has decided to let UTI Mutal Fund manage 10% of its fresh investment in the stock market for the 12-month period starting with July 2016. SBI Mutual Fund will continue to manage the lion’s share of the EPFO’s ETF corpus, a source said.
Since the beginning of its foray into the stock market from August last year, the retirement fund body has invested R7,000 crore till June, which has yielded 7.45% returns. Exchange Traded Funds, or ETFs, are funds that invest in various securities and are traded on stock exchanges.
SBI MF’s initial one-year term with the EPFO had ended in March 2016, but it was given a three-year extension. Trying to ignite some amount of competition for better returns, EPFO meanwhile invited request for proposals (RFPs) for the selection of asset management companies (AMCs) for managing its investment in ETFs in June this year. However, it terminated the advertisement later.
