A part of your provident fund (PF) money may soon begin to be invested in Infrastructure Investment Trusts (InvITs) as retirement fund manager Employees’ Provident Fund Organisation (EPFO) may start investing a portion of its annual deposits in these infrastructure investment trusts.
The move could not only help India boost investments in infrastructure but also expand the scope of EPFO’s investment basket beyond bonds, government securities, and exchange-traded funds (ETFs), two government officials told mint, requesting anonymity.
What are InvITs?
InvITs are investment vehicles housing infrastructure assets or projects of companies that allow investors to make small investments and receive regular income. It is an alternative investment fund (AIF) that works like mutual funds and is regulated by the Indian market regulator Securities and Exchange Board of India (Sebi).
The key features of InvITs are mandatory distribution of 90% of net…