Home loan rates to drop, if EPF enters mortgage mart

In what could bring down home loan rates, the Employees Provident Fund board is toying with the idea of investing in mortgage-backed securities as part of its multi-pronged strategy to raise returns on its assets.

"MBS could turn out to be a viable proposition to invest in, but many measures are needed in developing the market," informed sources told PTI, adding National Housing Bank was in touch with EPFO on this matter.

EPFO is viewing investment in MBS as a more favourable route as risks are much lower than investing in equities, which promise highest return but are fraught with high risks.

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