The CBT (central board of trustees) of EPF has decided to open up its fund management for private asset management companies, and in consequence Reliance Capital has got an opportunity to manage EPF corpus. Although, as of now EPFO does not invest in stock market, yet 10 per cent of the fund could be used for investment in equity market.

 

The plan of allowing EPF management for private asset management companies has been opposed by trade unions; however, it seems it does not have any impact on policy makers. Other than Reliance Capital, HSBC AMC, ICICI Prudential AMC and the SBI are other companies which would be managing EPF of more than 4.5 crore workers of India.

 

The entry of Reliance Capital however was surprising as it was not among the managers selected by the Finance and Investment Committee (FIC). Till date, SBI has been the lone manager of EPF, and after the change of set of rules there are four players for the same. The quotation fee for HSBC AMC was 0.00063%, ICICI - 0.00075%, SBI and Reliance Capital 0.01%.