People are becoming increasingly interested in the PFRDA-regulated National Pension Scheme (NPS), which allows private employees and government employees to engage in shares while also having the ability to set an investment limit.
EPFO Equity Investment: EPFO (Employees’ Provident Fund Organization) is considering giving all of its subscribers the option of investing in equity. Currently, crores of EPFO subscribers do not have this option, and EPFO invests up to 15% of its assets in the stock market through its fund managers.
People are becoming more interested in NPS.
People’s interest in the PFRDA-regulated National Pension Scheme (NPS) is growing rapidly, because the National Pension Scheme allows private employees and government employees to engage in inequities, and there is also the flexibility to set the investment limit. Subscribers to the National Pension Scheme can expect an average return of up to 12% on equity investments.
EPFO is also en route to NPS.
As a result, similar to NPS, EPFO can provide its crores of subscribers the option of adjusting the overall investment limit by increasing the equity investment limit for better returns. However, it is possible that no more than 50 percent of the contribution will be permitted to be invested in shares. If this occurs, employees will have the option of investing a larger portion of their EPFO investment in equities, which will result in higher returns.
Employee contributions to the EPF will increase by 12%!
Many more major decisions concerning the Employees’ Provident Fund (EPFO) may be made in the following days at the Central Board of Trustees meeting. Currently, 12 percent of an employee’s basic income is placed in the Employee Provident Fund (EPF), which can be increased by the company’s management, but the EPFO believes that in the near future, the employee will be required to contribute more than 12 percent. There will be an option to put money into the EPF.