Subscribers of the Employees’ Provident Fund Organisation (EPFO), the retirement fund body, may soon be allowed to invest more of their savings in the equity market. They will also get to use various digital tools to track and manage their funds in future.
Currently, the EPFO invests up to 15 per cent of its investible deposits into exchange traded funds (ETFs). Till now, such investments have totaled approx. Rs 55,000 crore. It was not possible for the members to increase this investment as the ETF investments were not reflected in their accounts. The savings were only visible as a gross amount under cash component.
The EPFO’s new software will help reflect the retirement savings as different components —in cash and ETFs separately. The EPFO will then allow subscribers the option to increase or decrease their investments in stocks.
The introduction of new digital tools is aimed at easing out the service levels for employees as well as employers. The pensioners’ portal also helps EPFO pensioners access all their account details related to pensions.
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