EPFO plans ₹25,000 cr reserve to protect provident fund interest
Business
EPFO is planning a massive ₹25,000 crore reserve fund to make sure your provident fund interest doesn't take a hit when markets get rocky.
The idea is to shield payouts for its nearly 30 crore members from things like corporate bond defaults and forced-exit losses, basically, keeping your money safer no matter what's happening in the market.
EPFO fund to use ETF profits
The new fund would be built up over time using extra profits from ETFs and surplus interest income.
EPFO plans to park this money in safe government securities for steady returns.
This move comes after looking at past ups and downs, like the big deficit in 2019-20, and aims to keep interest payments stable even if markets turn unpredictable.