The move could open up new investment avenues such as mutual funds, corporate bonds, commercial papers of leading private banks, and even equities
A chunk of the ₹91,000 crore corpus that the Employees’ State Insurance Corporation (ESIC) keeps in ultra-safe, but low-yielding fixed deposits (FDs) could find its way into stock markets and corporate bonds, with the Union government considering an expansion in its investment scope.
The move could open up new investment avenues such as mutual funds, corporate bonds, commercial papers of leading private banks, and even equities, two government officials aware of the plan said on condition of anonymity.
ESIC deducts a portion of salary from employees earning up to ₹21,000 a month, who are primarily industrial workers. The money is invested in fixed deposits of public sector banks and bonds of public sector units (PSUs), and the returns are used to provide medical assistance from primary to tertiary care to these staff and their families.
Source: livemint
