The Employees’ Provident Fund Organization (EPFO) will continue to Invest in Adani Ports & SEZ and Adani Enterprises, at least till September according to a report by The Hindu. EPFO is the largest retirement fund, managing the retirement savings of 27.73 crore Indians.
EPFO invests 15% of its total investment corpus in exchange-traded funds (ETFs) of the Nifty and Sensex. The report called EPFO “captive investors” to the two Adani Group companies as Adani Enterprises and Adani Ports stocks are part of the Nifty and Sensex indexes which are tracked by the EPFO-managed funds. EPFO is estimated to have invested Rs 1.57 lakh crore in ETFs as on March 2022 and invested an additional Rs 8,000 crore in FY23.
The report comes to light as the EPFO’s two-day meeting scheduled on March 27 begins. The Central Board of Trustees will announce the financial estimates and interest rates for FY23. It remains to see if the board will continue with its investment strategy of investing in Index ETFs which have exposure to the hammered Adani stocks or if the board decides on a new strategy in light of the events.
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