 "Tipping Point: Why has EPFO decided to invest in AA+ bonds?")
This week the Employees’ Provident Fund Organisation (EPFO) decided to invest a part of its corpus in AA+ bonds. Of the current investment of Rs 15,000 crore, it has decided to invest Rs 3,000 crore in AA+ bonds. The balance Rs 12,000 crore will still be invested in AAA bonds. It has made this move to earn higher returns in a falling interest-rate scenario.
Does this put my EPF corpus at any risk?
Not really. According to Crisil’s definition, those with AA rating are deemed to carry high safety. The EPFO will take a few additional precautions. It will invest only in those bonds that have been rated AA+ by at least two rating agencies, have been profitable for the past three consecutive years, and have a net worth of over Rs 1,000 crore. This should put investors at ease.
One subscription. Two world-class reads.
Already subscribed? Log in
Subscribe to read the full story →*Subscribe to Business Standard digital and get complimentary access to The New York Times
Smart Quarterly
₹900
3 Months
₹300/Month
SAVE 25%
Smart Essential
₹2,700
1 Year
₹225/Month
SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months
Super Saver
₹3,900
2 Years
₹162/Month
Subscribe
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Exclusive premium stories online
Over 30 premium stories daily, handpicked by our editors
Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share
Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor
Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements
Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app
SAVE 25%