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There is no provision for investment of EPFO funds in equities at present, the Minister of State for Labour and Employment, Vishnu Deo Sai, informed the Lok Sabha on Wednesday.
In a written reply, the Minister said that at present the retirement funds of about 8 crore subscribers to the Employees Provident Fund Organisation (EPFO) are invested as per the pattern of investment notified by the Government in November 2013, wherein only investments in corporate debt and Government bonds are allowed.
He said the return on EPFO funds cannot be compared with the return on other pension schemes, such as the New Pension Scheme (NPS). This is because the declaration of the return on NPS is on the basis of the accounting policy prescribed which allows the net asset value to be declared on the basis of current market value of the investments, while EPFO follows the cost value of the investment for accounting its investment and the return is declared on the basis of actual receipt of interest on the investments.
The return on EPFO investments is fixed whereas the return on NPS is not fixed and fluctuates on daily basis depending on the prevailing market conditions, Sai said.
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