Flawed rationale behind EPF re-entering the stock market = කොටස් වෙළඳපොලට සේවක අර්ථසාධක අරමුදල (සේ.අ.අ.) නැවත ඇතුල්වීම පිටුපස ඇති සාවද්‍ය තර්කය

Abstract

At the end of 2018, the EPF resolved to re-enter the stock market despite substantial losses and allegations of mismanagement on EPF’s equity investments in the past. The EPF provides two reasons for the decision: (i) that members will benefit from higher returns; (ii) that the increase in EPF loanable funds will soon outstrip government requirements for additional borrowing. This Insight proves that both these reasons are analytically flawed.