EPFO Latest News Update: EPFO is preparing to give investment options to its investors based on their risk appetite and age. This option can give the option of investing a large part of the total investment of EPF and pension account holders who are younger, in equity i.e. stock market so that they can get higher returns. And account holders who are older, their money can be offered the option of investing in bonds or secured debt. Actually, EPFO is considering changes in these rules with the aim of giving higher return on their investment to its investors.
At present, EPFO can invest only 15 per cent of the fund’s total corpus in equities i.e. stock market Nifty 50, Bharat 22 Index and Central Public Sector Enterprises based exchange traded funds. At present, EPFO has a total corpus of Rs 15 lakh crore and has a total of 6 crore account holders. But in order to give higher returns to its account holders, EPFO wants to invest 25 percent of the corpus in the stock market, on which it is waiting for the approval of the EPFO board.
EPFO is considering to invest the money deposited in Provident Fund and Pension Fund separately. Depending on the age of the account holders and their risk appetite, their hard earned money will be invested. In which a large part of the deposits in the funds of younger people will be invested in equities and the investments of older people will be invested in safe places. The amount deposited in the pension fund can be invested in sectors like infrastructure and real estate, which can give higher returns.
EPFO has given 8.10 percent return to its account holders in 2021-22, which is more than the returns given by the bank. But it is not possible to give high returns from this type of investment method in the long term. Therefore, preparations are being made for a major change in the methods of investment. The EPF rate has come down to 8.10 percent, which is the lowest since 1977-78.