Provident fund body sticks with last year’s interest rate as a rally in stocks boosts returns
The central board of the Employees’ Provident Fund Organisation (EPFO) on Thursday decided to pay 8.5% interest to its 50 million salaried subscribers for 2020-21, as a frenzied stocks rally in the past year boosted returns.
The retirement fund manager expects to earn around ₹70,000 crore in the year to 31 March, including a little more than ₹4,000 crore from its investments in funds that track stock market indices. EPFO paid 8.5% to its members in the previous year.
“The interest rate recommended is a result of combined income from interest received from debt investments, as well as income realized from equity investments,” the retirement fund body said after its central board meeting. “This has enabled EPFO to provide higher returns to its subscribers and still allow it to keep a healthy surplus to act as a cushion for providing higher returns in the future.”
Source: livemint
