EPFO Increases Equity Exposure in Long-Term Asset Strategy

The Employees' Provident Fund Organisation began investing in State Development Loans (SDLs) as part of its long-term asset management strategy. Between April and June, the organization deployed nearly Rs 17,000 crore in fresh equity investments, accounting for 14.6% of the fresh capital across all asset classes. The organization's cumulative equity corpus reached around Rs 3.7 lakh crore by the end of June.

The organization relies on stocks to generate inflation-beating returns for its members. Historically, more than three-fourths of EPFO's investments have been in central government securities and state development loans, which have yielded between 6.5% and 7% recently. The increased equity exposure is expected to yield strong long-term gains when the stock market recovers.