- The pension fund body is unclear how it would credit gains made from equity exposure to its subscribers
- EPFO subscribers were to get ETF units as well as the non-equity component in their accounts
Five years after it entered the equity market, the Employees’ Provident Fund Organisation (EPFO) is yet to iron out shortcomings, including a move to allocate units of Exchange Traded Fund (ETF) to its subscribers.
EPFO has been investing in the stock market since August 2015 via ETFs. So far it is unclear how it would credit gains made from its exposure to equities to subscribers during a partial or full withdrawal.
Since 2017, there has been talk on how EPFO subscribers will get to see ETF units as well as the non-equity component of their retirement corpus in their account. However, this is yet to become effective.
“The ETF unit allocation plan shall offer freedom to withdraw the non-equity component and keep the ETF units in their account even after retirement or in the case of early withdrawal,” said a government official requesting anonymity.
