The first investment, announced here by Labour Minister Bandaru Dattatreya in the presence of top market participants, would be made through SBI Mutual Fund's two index linked ETFs -- one to the BSE's Sensex and the other to NSE's Nifty.

The minister said Employment Provident Fund Organisation (EPFO) will initially put only 5 percent of its incremental fund flow, which would be around Rs 5,000 crore, but the cap could be increased to 15 percent next year.

The return from the ETF investment will be more than the 8.75 percent the EPFO offers to subscribers now, he stated. "We expect that the return be given to 4.67 crore subscribers of EPFO, which started investing 5 percent of its incremental fund of Rs 1,00,000 crore, to be more than the existing return of 8.75 percent," the minister told reporters after making a formal announcement here today.

Apart from Dattatreya, the event was attended by SEBI's whole-time member S Raman, SBI chairperson Arundhati Bhattacharya, BSE chief Ashish Kumar Chauhan and the Central PF commissioner K K Jalan.

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