EPFO considers 3% of new PF deposits for SEBI-approved AIFs
Big update for anyone with a PF account: EPFO is thinking about putting some of your retirement savings into startups and alternative investment funds (AIFs), hoping to boost long-term returns.
If it goes through, up to 3% of new yearly deposits could go into SEBI-approved category I and category II AIFs, part of a push to support Startup India Fund of Funds 2.0.
EPFO seeks strict AIF safeguards
This move would be a big shift from EPFO's usual, safer investments in traditional, ultra-safe debt instruments.
The plan gets reviewed in November, and if approved, nearly 30 crore members could benefit from higher growth potential.
To keep things secure, EPFO wants strict rules, like only investing in AIFs with at least ₹100 crore and avoiding foreign companies, to balance risk while aiming for better returns on its massive ₹30 lakh crore fund.