As per a leading news daily report, the social security scheme administering body EPFO will in near future allow its subscribers employed in the organized sector to go in for and choose equity option themselves. In the current regime, the EPFO through the fund managers invest a more not more than 15% into equities.
There has been traction in the NPS scheme of late which gives its investors an option to invest in equities also. They are also given away the flexibility to decide on the investment limit.
In the equity scheme under the NPS, investors are drawing an average return of up to 12%, so in order to better the return for its EPF subscribers, the EPFO is considering the option. Nonetheless, in no case not more than 50% will be allowed to be allocated towards equities.
There is also an option being considered which will allow EPF subscribers to contribute over 12% of the basic pay and DA to the EPF.
Further, in the upcoming meets of the CBT, there will be discussed upon various important things around EPF.