EPFO mulls offering investment options based on subscribers' age, risk profile: Report

The Employees' Provident Fund Organisation (EPFO) is considering offering investment options to its provident fund and pension scheme subscribers based on their age and risk profile, according to a report by The Economic Times.

The body, eyeing better returns, would invest a higher percentage in equity for the younger subscribers. The portfolio for those nearing retirement would include safer investment options.

The EPFO has a corpus of over Rs 15 lakh crore and it has nearly 6 crore subscribers.

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As of now, EPFO can invest up to 15 per cent of its funds into equities through exchange-traded funds (ETFs) based on Nifty, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 Indices.

A senior government official told the publication that the EPFO is planning to separate investments of provident and pension deposits.

"This could further be differentiated on the basis of age and risk profile with investment more in equity for younger members and in other safe instruments for the elderly," the official said.

DH could not independently verify the report.

The EPFO’s payroll is a part of the organised sector workforce for those establishments which are covered under the provisions of Employees’ Provident Funds & Miscellaneous Provisions (EPF & MP) Act, 1952. It is a social security organisation that provides provident fund, pension benefits to the members on their retirement and family pension and insurance benefits to their families in case of untimely death of the member.

(With inputs from PTI)