Equity investment limit may rise to 25% for EPFO

Provident Fund

If a plan being considered by the country’s retirement fund manager bears fruit 25% of a salaried individual’s contribution to the employees’ provident fund (EPF) will go equities investment limit according to the Live Mint report. For now, the EPFO subscribers invest 15% of the contribution in equities and rest in debt.

 Nevertheless, rather than making this requisite to all subscribers, the higher allocation may be offered as an option to employees on relatively high salaries.
If the proposal takes effect, this will be a withdrawal from the EPFO’s one-size-fits-all policy for investing in retirement savings for the contributors. The EPF has about 5 crore contributors, out of that 75% are estimated to have less than Rs 15,000 salary a month.

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