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Employee Provident Fund allowed to invest up to 5% in AIFs

Economic Times  

The labour ministry has notified the changes in the investment pattern of the Employees Provident Fund Organisation (EPFO), paving way for the retirement fund body to invest up to 5% of its investible surplus in alternative investment funds (AIFs) that support infrastructure, micro, small and medium enterprises (MSMEs), venture capital funds and social venture capital funds. With this, EPFO will have the option to invest in AIFs whose corpus is equal to or more than INR 100 crores with maximum exposure to a single AIF capped at 10% of the AIF Size. However, this limit would not apply to a government sponsored AIF. Further, at least 51% of the funds of such AIF shall be invested in either of the infrastructure entities or SMEs or venture capital or social welfare entities.