The market has been bullish for most of the year 2021-22, due to which the return on investment of EPF is also expected to be better.
Your money in the stock market may have been wiped out due to the Russia-Ukraine war, inflation in the US and the Fed raising interest rates and of course getting the same ludicrous interest on fixed deposits, but, there is such a place. Where you can still expect good returns . This is the place of EPF i.e. Employees’ Provident Fund… It is expected that this year also i.e. in 2021-22 also, eight and a half percent interest on the capital deposited in your EPF ( Interest rates )) Can get it.
In this era of uncertainty, this is not good news.. In Employees’ Provident Fund Organization ie EPFO, the Central Board of Trustees takes all the important decisions. Now the CBT meeting is going to be held on 11-12 March. In this meeting, the interest rates for the current financial year are to be decided. Suppose… what is the interest rate to be given to EPF subscribers this year.
The market will get the benefit of boom throughout the year
Now coming to the point why you can expect eight and a half percent interest rate on EPF this year as well, then the matter is like this, even though the market has been crying for the last one and a half months, but for the rest of the year, the market is bullish. Riding on a horse. EPFO has also benefited from this. You must know that EPFO also invests money in the market. EPFO has earned a lot on this investment. Take an idea of this in such a way that this year EPFO will have to sell less ETF units than last year to give you returns. Consider this according to the figures, in March 2020-21, EPFO had raised Rs 10,130 crore by selling ETF. In this, Rs 4,073 crore was of capital gains i.e. profit. Now this year EPFO will have to sell only less ETF units than this. Till March 2021, EPFO had more than one lakh thirty seven thousand crore investment in ETF itself.
Better returns on EPF than FDO
That is, EPFO is sitting on a pile of cash and earnings. Now when this is the case, then the subscribers will also ask that brother, when you are coding profits by pressing, then where is our share in it. On this EPFO can answer that take eight and a half percent interest and be happy. That’s where the hopes are getting wings. In the condition of FDs and other debt bases, this eight and a half percent looks really comforting.
