Covid-19 selloff in March eats into EPFO equity returns in FY20

Investments accrue return of -8.3 per cent for the fiscal, down from 14.7 per cent in the previous fiscal

The Employees’ Provident Fund Organisation’s (EPFO’s) investments in the equity markets yielded negative returns in 2019-20, official data showed. The investments accrued a return of -8.3 per cent for FY20, down from 14.7 per cent in FY19.

The unprecedented selloff in March, triggered by the Covid-19 pandemic, has eaten into equity returns of a majority of investors.

In March, the benchmark Sensex slumped 23 per cent, while for the entire year, the index dropped 24 per cent, its worst showing in a decade. When compared to the returns from Sensex, though, EPFO’s equity returns look favourable.

However, the EPFO’s skew towards CPSE and