EPFO: Every month, Provident Fund (PF) is deducted from your salary, which is then invested by the EPFO ​​in various ways to generate earnings. Based on these earnings, the EPFO ​​provides attractive interest rates of up to 8.25% to its members, managing a massive fund exceeding Rs 31 trillion. Surprisingly, the EPFO ​​does not directly oversee a significant portion of this investment but instead relies on professional fund managers through Portfolio Management Services (PMS).

PMS, often associated with affluent investors, is utilized not only by the wealthy but also by institutions like the EPFO ​​and other provident funds, as revealed by SEBI data from June 2026. This indicates that PMS caters to a wide range of investors, not just the rich. The EPFO ​​entrusts its funds to SEBI-registered portfolio managers to ensure safety and stable returns over the long term, while retaining control over major investment decisions.

With specific guidelines in place, the EPFO ​​allocates its funds into government bonds, corporate bonds, and equities through index ETFs. The complexity of managing such vast funds necessitates the involvement of outside experts who possess the necessary expertise in debt markets, risk evaluation, and market monitoring. By delegating this responsibility to professional portfolio managers, the EPFO ​​ensures efficient handling of its funds.

Ordinary investors can learn valuable lessons from the EPFO’s investment approach, emphasizing discipline, a balanced approach between equities and debt, and the importance of risk management. While the EPFO’s strategy may not suit every investor due to varying needs and taxation implications, adopting a disciplined investment approach and seeking professional investment options like mutual funds or ETFs can be beneficial for individual investors.

Meanwhile

Thousands of crores of rupees lie unclaimed in banks, LIC, and the EPFO, and this amount is increasing year after year. But now the Employees’ Provident Fund Organization (EPFO) has found a way to return this money to its rightful owners.

In fact, inactive PF funds are going to be transferred directly to the bank accounts of more than 100,000 employees, without offline or online claims. The Employees’ Provident Fund Organization (EPFO), under the Ministry of Labor and Employment, has completed the identification and verification of 1.18 lakh inactive accounts to expedite this process.