For the current financial year, Employees’ Provident Fund Organisation (EPFO) will double its equity investment and invest 10% of the incremental corpus through the exchange traded fund (ETF) route. It is estimated that it will invest about Rs13,000 crore in ETFs.
An ETF is a basket of securities that tracks the stock of the companies on an underlying index, and it is traded on the stock exchange. Being a passive fund, it not only comes with a much lower expense ratio but also circumvents the fund manager risk.
