Those who have entrusted their retirement funds to state run Employees' Provident Fund Organisation (EPFO) have a reason to rejoice. Thanks to the new professional Fund Managers, the fund will be able to pay its investors a return of 8.5% without dipping into its reserves. The Fund managers of EPFO are: State Bank of India, ICICI Prudential Asset Management LTD., HSBC Asset Management Co. Ltd., and Reliance Asset Management Co. Ltd. SBI generated the highest yield of 9.14% for the EPFO, followed by ICICI Prudential at 8.84%. The trustees of EPFO are expected to meet soon to decide the payout for the current year, which could be higher than 8.5% paid last year.
EPFO manages funds in excess of Rs.3 trillion. A large chunk of the funds are invested in Govt. securities and Public Sector bonds. The guidelines issued for investment by EPFO are: 25% in G-Secs, 15% in state Govt. bonds, 30% in public sector bonds. The returns in the second half of FY 2008-09 have been very good from fixed income securities because of the successive rate cuts announced by RBI.
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