EPFO: Members are expected to soon get the right to decide where to invest the EPF contribution
New Delhi. EPFO members may soon get the right to decide whether to invest the contribution of Employees’ Provident Fund Organization (EPFO) subscribers in equities. Equity is considered a risky investment, but the returns are likely to be high in the long run. In such a situation, EPFO wants the members to decide on their own regarding investment.
Decision will be taken soon
according to sources, a meeting of the Central Board of Trustees of EPFO is going to be held. In this, many big decisions related to EPF can be taken. At present, EPFO through its fund managers invests 15% of the amount in stocks in the equity market i.e. the stock market.
It is fixed that the maximum limit of 50 percent
EPF gets 8.5% interest. Investment experts say that the EPFO can also increase the investment limit in equities to give better returns to its members. As per the rules of the Central Government, the investment of EPFO in equity cannot exceed 50 per cent.
Expect higher returns
- EPFO currently invests in equities up to 15 percent
- NPS gives annual return of up to 12% to its subscribers
- EPFO may get approval from the government to invest in equity up to 50 percent
