New Enroll in our GIC Finance Online Course Here!

    Register

    Question

    EPFO invests in ETFs that mirror the performance of

    prominent indices like BSE Sensex and Nifty 50.  Additionally, EPFO also invests in ETFs that are created with the specific intention of divesting government shareholding in India Inc.But now as per government mandate, EPFO is allowed to invest anywhere between _________of its corpus in equity instruments.
    A 5 to 15 percent Correct Answer Incorrect Answer
    B 7 to 12 percent Correct Answer Incorrect Answer
    C 9 to 17 percent Correct Answer Incorrect Answer
    D 10 to 16 percent Correct Answer Incorrect Answer
    E None of these Correct Answer Incorrect Answer

    Solution

    EPFO invests in ETFs that mirror the performance of prominent indices like BSE Sensex and Nifty 50.  Additionally, EPFO also invests in ETFs that are created with the specific intention of divesting government shareholding in India Inc. But now, with an increased focus on equity instruments, EPFO is looking to target better returns and a larger investible domain for its corpus and subscribers.  As per government mandate, EPFO is allowed to invest anywhere between 5 to 15% of its corpus in equity instruments. However, this ceiling has never been utilized by EPFO, with its maximum investment going just a little over 10%.

    Practice Next