Hyderabad: Union Labour Minister Bandaru Dattatreya said the employees provident fund manager EPFO has decided to invest about Rs 3,000 crore in high-rated corporate bonds this financial year.
The Employees Provident Fund Organisation or EPFO at a recent meeting decided to cut the current investment of Rs 15,000 crore in AAA-rated bonds by Rs 3000 crore and invest that amount in AA+bonds.
"We invest Rs 15,000 crore in AAA-rated bonds. In view of the high returns and to increase the basket, we have decided to invest Rs 3,000 crore in AA+rated corporate bonds also where the return is 25-45 basis points more than that of AAA bonds. So far we have been investing in AAA bonds only," Dattattreya said.
The investment will be made in those corporate bonds which have been rated by at least two rating agencies as AA+.