(ET)
Buoyed by higher returns on investment in equities, retirement fund body EPFO is mulling to give its subscribers an option to set aside a higher proportion of their provident fund money for this asset class.
The proposal, if it goes through, will fetch higher returns to 4.5 crore EPFO subscribers in the current declining interest rate regime where returns on provident fund accumulations are bound to see a downward trend, much in sync with other small saving schemes. Currently, 15% 15% of PF contribution is invested by EPFO in exchange-traded funds and 85% in debt instruments like government securities.
This would require significant alteration in the investment pattern of EPFO notified by the finance ministry from time to time, a senior government official told ET on condition of anonymity, as the proposal is still at an initial stage. “Giving subscribers the choice of investment for their provident fund money will make the EPFO scheme more lucrative,” official added.
