How has EPFO's equity investment experience been?
Business StandardMillions of private sector employees park their money with EPFO to ensure a hassle-free retirement. The government recently told the Parliament that the retirement fund body has invested Rs 1.59 trillion in exchange traded funds as of March 2022 and the investments are now worth Rs 2.26 trillion. The fund body’s notional equity returns on EPFO equity-related investments increased from 14.6% in FY21 to 16% in FY22, according to the government. The safe investment bets mostly in fixed income instruments are also mainly due to the largely unpredictable nature of the markets and the fact that EPFO has to offer fixed interest returns year after year to its over 60 million subscriber base irrespective of its underlying portfolio returns. However, in the long run, EPFO may need to go beyond ETFs that track two major domestic indices and make more diversified equity investments.
History of this topic
EPFO to offer ATM withdrawals for savings, new features from Jan 2025: official
Hindustan Times
EPFO board pitches amnesty plan for PF payment violations
Hindustan Times
EPFO update: Central Board of Trustees meet to decide on proposals — ETF investment increase to 15%? Details here
Live Mint
EPFO says it has ‘no direct investments in individual stocks’
The Hindu)
EPFO interest rate better than other schemes, reflects today's realities, says Nirmala Sitharaman
Firstpost
EPF rate slashed from 8.5% to 8.1% for 2021-22, to hit savings
The HinduDiscover Related
