EPFO Update: EPFO board meeting on November 20, possible discussion on EPF interest rate for 2021-22
[ad_1]
Employee Provident Fund Organisation: The meeting of the EPFO Board (EPFO) is going to be held on 20 November. It is believed that in this meeting, the EPF interest rate for the year 2021-22 can be discussed.
Discussion on EPF interest rate for 2021-22
It is believed that the EPF interest rate for 2021-22 is likely to remain only 8.5 percent. The scope for tampering with the interest rate is very less in view of the upcoming assembly elections and inflation. It has been decided to give 8.5 percent interest to 6 crore EPF holders for the year 2020-21, on which the Finance Ministry has also given its approval. A portion of the EPFO’s annual deposit may be allowed to be invested in Infrastructure Investment Trusts (InvITs). If this proposal is agreed, then investment in InvITs infrastructure can get a boost. So a new medium of investment will be included in the investment basket of EPFO. At present, EPFO invests in Exchange Traded Funds (ETFs), Government Securities and Bonds.
EPFO meeting being held after 8 months
The meeting of the Central Board of Trustees of EPFO is going to be held after about 8 months. In which the proposal for investment in InvITs along with EPF interest rate will also be discussed. Earlier this year itself, the EPFO board had approved investment in alternative investment funds. In fact, the deposit amount in EPFO is increasing continuously, due to which the need for a new avenue of investment was felt. A proposal to invest in InvITs can be considered keeping in mind the investment in long term funds linked to infrastructure.
15000-16000 crores deposited every month in EPFO
Every month about Rs 15000-16000 crore is being deposited in EPFO. It is believed that in 2021-22, the deposit of EPFO can increase between Rs 1.8 lakh crore to Rs 1.9 lakh crore. Out of this, 15 percent amount is invested in Equity and the remaining amount is invested in Debt Instrument. Considering the increase in deposits, EPFO has a great opportunity to expand its investment basket. This is the reason that in the Central Board meeting to be held on November 16, EPFO money can be considered in InvITs.
Read also:
Xplained: Know why this Diwali was the dullest for the auto sector in a decade?
Multibagger Stock Tips: From Rs 4 to Rs 75, this penny stock converted into multibagger stock in one year, gave 1,705 percent return
.
[ad_2]
