Employees Provident Fund Organisation (EPFO) has suggested funds to be invested in stocks for the long-term to get higher returns for them. This will allow the organisation to offer higher rate of interest to the subscribers.
The EPFO has been investing in Exchange Traded Funds (ETFs) since August 2015. It currently has over Rs 40,000 crore investment in the ETFs. What is remarkable that the EPFO had earned a return of around 16 per cent at Rs 1,054 crore when it sold a portion of its investments in ETF worth Rs 2,886 crore in February this year. The retirement fund body had sold the shares to maintain a higher rate of interest for subscribers.
Latest idea is to generate more profit. An expert panel formed by the body has suggested it to invest in ETFs ( equity-linked schemes) for the long-term ranging from 5-10 years to get better returns for the subscribers. The five-member panel was headed by Financial Advisor and Chief Account Officer of the EPFO with HDFC Mutual Fund CEO on its board, reported PTI. The report is now likely to be discussed next month.
There is a dire need to get the interest rate given to EPF subscribers up. The EPFO has lowered the interest rate to 8.55 per cent for the last fiscal from 8.65 per cent provided in 2016-17. It had provided 8.8 per cent rate of interest on deposits in the year 2015-16……….Read More>>