Just ahead of the poll season, there can be a reason to cheer for those employed in the organized sector as the pension fund body EPFO may hike rates from the current 8.55% as early as next month. The move straight away is a sop to 6 crore employees working in the organized sector and maintaining an EPF account to be used in the later years of one’s life.


The decision to this effect has been taken in the recent annual meet of the Employees Provided Fund Organisation (EPFO). At the same time, as per a report, the organization is engaged in developing software to segregate heads that group into ETF or cash part within the broader PF account. Furthermore, as per their discretion, EPF subscribers will be able to increase or decrease their exposure to exchange-traded funds or ETFs.

Also, the body suggests to its subscribers to commit to the ETF component for a longer tenure of 5-10 years as that might yield better returns in comparison to other conventional safe bets such as the NSC and PPF. Notably, in the scenario, when EPF rate has been brought down, it has managed to offer a return of 8.55% over the last 2 year period in comparison to just 7.7% being offered by NSC or PPF.

Also Read: Five Best Investments Ideas for 2019

Source: Goodreturns