Centre lets EPFO invest up to 55% in corp bonds

The Centre has allowed the Employees Provident Fund Organisation (EPFO) to invest up to 55% in corporate bonds, including rupee-denominated bonds of multilateral agencies such as World Bank, IFC and ADB. While the labour ministry categorically ruled out any investment in equities, the EPFO has been allowed to invest up to 5% of PF money in money market instruments, including debt mutual funds. At least 75% of the investment in this category should have an “investment grade” (minimum “AA” rating) from at least one credit rating agency.