EPFO plans to offer investment options based on age and risk profile of subscribers: report

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The Employees Provident Fund Organization (EPFO) plans to offer investment options to its provident and pension policyholders according to their age and risk profile, according to a report by Economic times.

The body, envisioning better returns, would invest a higher percentage in equity for younger subscribers. The portfolio of those approaching retirement would include safer investment options.

EPFO has a corpus of over Rs 15 lakh crore and it has almost 6 crore subscribers.

Also Read – Value of EPFO’s Rs 1.59 lakh crore investment in ETFs stands at Rs 2.26 lakh crore: Labor Ministry

Currently, EPFO ​​can invest up to 15% of its funds in equities through exchange-traded funds (ETFs) based on the Nifty, Sensex, Central Public Sector Enterprises (CPSE) and Bharat indices. 22.

A senior government official told the publication that the EPFO ​​plans to separate investments from provident and pension deposits.

“This could further be differentiated on the basis of age and risk profile with greater investment in equity for younger members and in other safe instruments for older people,” the official said.

DH could not independently verify the report.

The EPFO ​​payroll is part of the organized sector workforce for establishments which are covered by the provisions of the Provident Funds Act 1952 and Miscellaneous Employee Provisions (EPF and MP). It is a social security organization that provides provident funds, pension benefits to members on their retirement and family pension and insurance benefits to their families in case of premature death of the member.

(With PTI entries)

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