EPFO Latest News @EPFOSCHEME.IN – Without consumer clearance, EPFO will not increase investment. EPFO believes that equity investors will be able to get better returns on PF deposits by investing in equity.
The Employees Provident Fund Organization (EPFO) is preparing to take advantage of the stock market rally. According to information from sources, EPFO can give its members the option to invest more of the PF in equities. However, its decision will depend solely on the account holder. Without consumer clearance, EPFO will not increase investment.
EPFO believes that equity investors will be able to get better returns on PF deposits by investing in equity. Indeed, on November 23, the EPFO’s Central Board of Trustees (CBT) is in the meeting. Its equity investment proposal will be presented. If the CBT approves the proposal, then PF members will have the option to allow more part of their deposit to invest in the stock market.
Presentation on investment in the stock market
According to the sources, at the CBT meeting on November 23, a team of experts will offer a presentation on the methods of investing in equities. The change in the way of investing in the stock market is to be considered at the CBT meeting. One of these proposals is the option to invest money in equity. The team of experts will give information on the advantages and disadvantages of the proposal to CBT.
How will EPFO now make a better return on PF deposits?
The EPFO still invests in up to 15 percent of the stock market. This investment has received better returns so far. On the other hand, there is no return on investment in government securities. In this case, the challenge before the EPFO is how to make a better return on PF deposits. EPFO has given 8.65 percent return on PF last year. At the same time, interest on bank FD and small savings schemes has decreased consistently.
EPFO Interest Rate
Interest in PF is to be decided soon. However, if sources say that there will be no decision on the interest received on the PF for the financial year 2017-18 in the meeting on November 23. Only interest rates will be considered in the meeting. Another CBT meeting may be held in December to fix interest rates.