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Higher equity share can boost EPF's returns

Rather than one-year returns, look at benefits of long-term investment in equity

Priya Nair 

It is mandatory for all salaried employees to invest in the Employees’ Provident Fund (EPF). The interest rate for 2015-16 has been fixed at 8.8 per cent and the Employees’ Provident Fund Organisation (EPFO) has to pay subscribers no matter how much return the corpus generates.

Since August 2015, the EPFO has been permitted to invest up to 15 per cent of its corpus in equity and equity-related investments. But, it currently invests only five per cent in equities. This five per cent, which is Rs 7,500 crore, generated a return of about 12 per cent, as on July, while the 95 per ...

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First Published: Mon, August 08 2016. 22:40 IST