EPFO Update – There is big news regarding the Employees’ Provident Fund Organisation (EPFO). According to the information, EPFO is going to make a major change in its investment portfolio soon. During the financial year 2025–26, EPFO will seek approval from its Central Board of Trustees (CBT) to redeem the investments made in Central Public Sector Enterprises and Bharat 22 Exchange Traded Fund (ETF).
According to sources, if this proposal is approved, EPFO will have a capital gain of around Rs 17237 crore, which will later be added to the annual interest account of the employees. However, EPFO has decided to continue its investments in other ETF schemes.
Plan to extend the investment period
According to source, the EPFO is planning to extend the tenure of these investments from four years to five years to ensure market stability and long-term gains. As per the Finance Ministry’s investment pattern, the EPFO is required to invest 5 to 15 percent of its new investments in equity and related instruments. The EPFO was allowed to invest in ETFs after receiving CBT approval in 2017, under which the fund invests up to 15% of its incremental funds.
The CBT will meet on Sunday under the chairmanship of Union Labor Minister Mansukh Mandaviya. Approximately 18 key agenda items will be discussed. The CBT is the EPFO’s highest decision-making body, comprising representatives from employers, employees, state and central governments. Currently, the EPFO manages over 300 million member accounts, and its total fund has reached approximately Rs 28 lakh crore. The upcoming meeting will determine the impact on interest rates and investment dividends for millions of employees.