EPFO may increase investment limit in equity
It is proposed to increase the investment limit in equity from 15 percent to 25 percent and this increase can be done in two phases, on which a decision is possible in the next month’s meeting.
The EPFO board is going to meet next month and in this meeting a decision can be taken on increasing the investment limit in equity. ET has given this information in one of its reports. For discussion on this matter only last month EPFO , EPFOFinance Investment and Audit Committee meeting was held. According to the report, the EPFO next month equity (equity) i.e. investment in the stock market (investment) can take a decision on the proposal to increase the limit from 15 percent to 25 percent. It has been said in the report that this increase in the limit can be done in two phases. However, on the other hand, many employee unions are opposing the increase in the investment limit in equity.
Meeting will be held on 8-9 July
The EPFO meeting will be held in Bangalore from July 8 to 9 next month. At the same time, the report said that after the proposal is finalized by the EPFO, it will be sent to the Ministry of Finance and the Ministry of Labor for final approval. At present, 15 percent of the PF deposit can be invested in equities. According to the proposal, this limit is to be increased to 25 percent, in which in the first phase the limit will be increased from 15 percent to 20 percent and in the second phase the limit will be increased from 20 percent to 25 percent. At the same time, it has been said in the report that in this meeting, the report and advice of 4 sub-committee constituted under EPFO will also be discussed in the meeting. These committees are related to issues like digitalisation, social security, pension etc. On the other hand, in another report, it has been estimated that if the investment limit is increased from 15 percent to 25 percent, then EPFO will be able to invest about 3000 thousand crore rupees in the stock market every month.
Decision to increase the returns of account holders
EPFO is currently offering the lowest interest rate in 4 decades to its account holders. Considering the low returns from low risk investment options, the fund is now turning towards better investment options where it can get higher returns and in return offer higher interest to the account holders on their deposits. After the better experience of the fund in the market in the past, the board is now preparing to invest more in the equity market.