06 Dec, 2014 4:17p.m.

EPFO may soon invest in equity

The Employees’ Provident Fund Organisation (EPFO), the institution invested with safeguarding and growing your retirement savings, usually does a poor job of its mandate.

Apart from shoddy accounting, which saw the organisation claim a surplus in 2010-11 when it was actually in deficit, it also provides poor service to the millions of workers who are forced to rely on it to safeguard their lifetime's savings. The organisation is now managing a corpus in excess of Rs 7,00,000 crore – and rather poorly. Between 2005 and now, it earned its subscribers a negative real rate of return – Rs 100 invested in 2005 became Rs 193, but after adjusting for inflation, the Rs 100 became Rs 97, according to this Mint story.

And now, with interest rates set to fall in the coming years, the EPFO will have trouble trying to generate even the 8.5-9.5 percent average returns that it has been managing so far. Yields on the safest of safe securities (the 10-year government bond) are down to 8 percent or less after the RBI’s recent monetary policy guidance, which talked of rate cuts “early next year.”

Read full article @ http://firstbiz.firstpost.com/money/epfo-may-soon-invest-equity-high-time-members-must-allowed-flee-nps-112013.html
Whatsapp Share Button

🏠 Go to StaffCorner.com Home Page

Latest in Important News
News 🕑 05 Jul,19 1:13p.m.
Latest in Other News Sections
Five new NPS rules you should be aware 🕑 06 Aug,19 1:09p.m.
RBI cuts repo rates to 6.25. Loans set to get cheaper 🕑 04 Apr,19 12:42p.m.
Sree Chitra Tirunal Institute develops intravenous cancer drug 🕑 26 Mar,19 9:29p.m.
CPAO FAQ For the Beneficiaries Of NPS- Additional Relief Scheme 🕑 13 Mar,19 11:06p.m.
'One Nation One Card' mobility card launched 🕑 05 Mar,19 1:47p.m.
PFRDA working on minimum assured returns for NPS subscribers 🕑 24 Feb,19 1:58p.m.
EPFO's 8.65% interest rate for FY19 is actually equivalent to 13.5%. 🕑 24 Feb,19 11a.m.
EPFO to offer 8.65%, its 1st hike in 4 years 🕑 22 Feb,19 10:51a.m.
RBI cuts repo rate by 25bps. EMIs likely to get cheaper 🕑 07 Feb,19 1:02p.m.
Budget 2019 expectations : IT exemption limit likely to be hiked to Rs 5 lakh 🕑 17 Jan,19 9:29p.m.