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EPFO likely to deploy part of its corpus in InvITs

EPFO likely to deploy part of its corpus in InvITs

The move to invest in InvITs will expand EPFO's options as it currently invests only in bonds, government securities, and exchange-traded funds.

The government has allowed EPFO to invest in category 1 and 2 segments of alternate investment funds. The government has allowed EPFO to invest in category 1 and 2 segments of alternate investment funds.

Retirement body Employees' Provident Fund Organisation (EPFO) is likely to start investing a part of its corpus in infrastructure investment trusts (InvITs).
 
Regulated by the Securities and Exchange Board of India (SEBI), InvIT is an investment vehicle for financing/refinancing infrastructure projects which allows investors to participate in the growth story of infrastructure.
 
The move to invest in InvITs will expand EPFO's options as it currently invests only in bonds, government securities, and exchange-traded funds, Mint quoted two government officials as saying.
 
"Among AIFs, InvITs are a good option. There is a demand for long-term funds in the larger infrastructure sector. It also offers a diverse mix to EPFO to look beyond its traditional investment vehicles," the publication quoted one of the officials as saying.
 
The government has allowed EPFO to invest in category 1 and 2 segments of alternate investment funds.
 
"Though InvITs are available in private and PSU space, EPFO can weigh the options and may look at PSU InvIT if our central board decides to look at only the government sector," the second official said.