Investment Avenues | srei

Investment Avenues

The investment avenues available to Provident Fund Trusts, Superannuation and Gratuity Funds are as follows:

Investment Pattern

S. No
Securities
% to be invested
(I)
Central Government securities as defined in Sec 2 of the Public Debt Act, 1944 (18 of 1944); and/or units of such mutual funds which have been set up as dedicated funds for investment in Government Securities and which have been approved by the Securities and Exchange Board of India;
25%
(ii)
(a) Government securities as defined in Sec 2 of the Public Debt Act, 1944 (18 of 1944); created and issued by any State Government; and/or units of such mutual funds which have been set up as dedicated funds for investment in Government Securities and which have been approved by the Securities and Exchange Board of India; and/or (b) Any other negotiable securities the principal whereof and interest whereon is fully and unconditionally guaranteed by the Central Government or any State Government except those covered under
15%
(iii)
(a) Bonds/securities of “Public Financial Institutions (PFI)” as specified under Section 4(1) of the Companies Act; “public sector companies” as defined in Section 2(36-A) of the Income Tax Act, 1961 including public sector banks; and/or
30%
(iv)
To be invested in any of the above three categories as decided by the Trustees.
30%
(v)
The Trustees subject to their assessment of the risk-return prospects, may invest up to 1/3rd of (iv) above, in private sector bonds / securities which have an investment grade rating from at least two credit rating agencies.