[ad_1]
Barely two days before the announcement of its annual interest rate for MER, the Employee Pension Fund Organization (EPFO) expects below-average returns on its equity investments in CPSE ETFs and Bharat 22, said the Mint.
As of December 31, its investments in CPSE ETF and Bharat 22 ETF had yielded only 1.89% and 0.48%, respectively. This announces bad news for its subscribers over six crores.
In January 2017, EPFO decided to invest in certain Exchange Traded Funds (ETFs) to help the government achieve its divestment target.
In August 2015, it began with a mandate to invest 5% of its deposits that could be invested in a stock-linked system. The proportion was increased to 10% in 2016-17 and 15% thereafter in 2017-18.
Also read: EPFO is likely to keep the interest rate at 8.55% for fiscal year 19
This compares favorably with the returns of those managed by SBI Asset Management Co. and UTI Asset Management Co. At the end of December, the SBI ETFs and UTI had average returns of 12% and 10.31%, depending on The report.
Currently, the pension fund has invested 5,507 million rupees in the CPSE ETFs in three tranches starting in January 2017 and in the Bharat 22 ETF in two tranches starting in November 2017.
According to a newspaper article, this issue should be discussed at the meeting of its central board of February 21 and should also consider further investments in the ETFs.
Bharat 22 ETF
The second complementary offer of Bharat 22 ETF (B22ETF) was open for subscription on 14 February. Since its launch in November 2017, the government has already raised 22,900 Rupees Rp in two tranches through B22ETF.
An investment in this fund since its launch registered a loss of 8.7%. Over the past year, Nifty has significantly underperformed, down 9.66% from a gain of 2.55% for the index.
On February 14, Moneycontrol reported that it was not an investment option for beginners. "Investors looking for actively managed investment solutions should avoid this regime. It can not be a basic portfolio either. If you want to invest in large-cap stocks, an ETF (or exchange-traded fund) that tracks Nifty may be a better investment option. You may also want to explore actively managed multi-funded plans with a long-term view, which will from time to time hold some of the stocks that are the constituents of this merit index of individual stocks, "says L & # 39; article.
CPSE ETF
The performance of the PTP for the public sector of the central public sector has also been disappointing since its inception in April 2014. Over the past year, the instrument has lost 22.82%. Then, in January 2017 and March 2017, an additional funding offer (FFO) and a FFO 2 were launched respectively.
In November 2018, the third FFO helped the government to raise more than 17,000 crores of rupees. You do not know which mutual funds to buy? Download the Moneycontrol transaction app to get personalized investment recommendations.
[ad_2]
Source link
