EPFO: Employees can get an opportunity to invest more part of their EPF investment in equities. The benefit of this will be available in the form of higher returns. Meaning the returns can be much higher than the current 8.5 per cent interest.
EPFO: Employees’ Provident Fund Organization (EPFO) is considering giving an opportunity to all EPF subscribers to opt for equity investment. Till now more than 6.5 crore subscribers of EPFO do not have this option.
But, EPFO invests up to 15 percent in equity market (EPFO equity investment) through its fund managers. Good interest is also offered to you on the basis of the returns earned from it. Currently, 8.5 percent interest (EPF interest rate) is being available on PF.
People investing in NPS in search of good returns
In fact, the interest of people in the PFRDA regulated National Pension Scheme (NPS) is increasing rapidly, as the National Pension Scheme gives the option of investing in equities from private employees to government employees, and there is also the flexibility to fix the investment limit. . Under the National Pension Scheme, the subscribers are getting an average return of up to 12% in equity investment.
EPFO can also give now a chance to invest directly in equity
On the lines of NPS, EPFO can also give an opportunity to its crores of subscribers to fix the limit of total investment by increasing the limit of equity investment for better returns.
However, there is a possibility of one thing in this that in no case more than 50 percent of the contribution will be allowed to be invested in equities. If this happens, then employees will get an opportunity to invest more part of their EPFO investment in equities, which will benefit in the form of higher returns.
Contribution in EPF may be more than 12%!
In the coming days, many more big decisions related to Employees’ Provident Fund (EPFO) can be taken in the meeting of the Central Board of Trustees. At present, 12 percent of the basic salary of an employee of a company is deposited in the Employee Provident Fund (EPF), and the management of the company can increase it, but the EPFO is of the view that in the coming days, the employee will now have to contribute more than 12 percent. Option to deposit in EPF will be given.
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