EPFO Equity Investment Limit: Preparations are being made to give great news to crores of account holders on behalf of EPFO. If EPFO’s plan is approved, then PF account holders will get more interest.
EPFO to Increase Equity Investment Limit: If you are also employed and every month PF is deducted from your salary, then this news is for you. If you are troubled by the low interest available on PF, then your complaint is going to be resolved soon. Yes, after the Employee Provident Fund Organization (EPFO) plan is stamped, you will get more interest on the EPFO account than before.
Lowest interest rate in last 40 years
The Employees’ Provident Fund Organization (EPFO) is preparing to give good news to crores of subscribers. Actually, EPFO has taken a big step in trying to give better interest to the account holders. Let us tell you that at present, 8.1 percent interest is being given to PF account holders by EPFO. This is the lowest interest rate in the last 40 years.
Interest rate may increase in coming years
Now with the new move of EPFO, the interest rate may increase in the coming years. For the financial year 2020-21, 8.50 percent interest rate was announced by the Employees’ Provident Fund Organization (EPFO). But the interest rate available in 2022 has come down.
Expected to benefit crores of subscribers
EPFO is going to increase the equity investment limit from 15 percent to 25 percent, based on the exclusive report published in the partner website Zee Business. Crores of subscribers are expected to benefit from this move of EPFO in future. This proposal of EPFO has been approved by the Finance Investment Committee.
Changes will happen in a phased manner
The proposal passed by the Finance Investment Committee is expected to be approved in the meeting of the Central Board of Trustees to be held at the end of the month. Let us tell you that at present 15 percent of EPFO is invested in Equity and the rest in Debt. But now EPFO is going to fix the investment limit of 15 to 20 percent and then 20 to 25 percent in a phased manner.
The interest rate on PF for the financial year 2022 is the lowest (8.1%) in 40 years. But the return in equity investment is up to 14 percent. Crores of PF subscribers will be able to get better interest by increasing the share in equity.
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