Retirement fund body EPFO may well provide nine per cent interest rate on PF deposits to the current fiscal to be able to its over 5 crore subscribers, slightly above 8. 75 per cent paid in 2013-14.
"The initial estimates indicate which the Employees' Provident Fund Organisation (EPFO) can simply provide nine per cent interest rate on PF tissue for 2014-15, inch a source claimed.
According to your pet, the improved current market conditions, especially following formation of a whole new government at Heart last month, have raised anticipations of higher assure on various investments by the body.
EPFO deals with a corpus associated with over Rs 5 lakh crore. It has received Rs 71, 195 crore while incremental deposits from its subscribers underneath social security schemes run because of it during 2013-14, that's 16 per cent above Rs 61, 143 crore collected because of it in 2012-13.
The origin said EPFO in addition plans to unlock its investment associated with around Rs fifty five, 000 crore within Special Deposit Structure (SDS). The government pays a fixed rate of eight per cent on SDS to EPFO that's lower than different investment options available in the present legal frame work.
EPFO is also anticipated to improve yields or maybe returns on its investment within the new norms prescribed under an expenditure pattern notified by the Labour Ministry not too long ago.
According to the revolutionary pattern, EPFO can invest approximately 55 per penny of its funds with big debts securities issued simply by banks and lender and other physique corporates.
The new expenditure pattern also allows EPFO to get up to five per cent of its corpus in money market tools, including units associated with mutual funds, money linked schemes regulated by Securities and also Exchange Board associated with India.
The new investment norms provide for parking approximately 55 per cent on the EPFO funds in a very new category including government and state bonds.
Source: www.taxalertindia.com
