PF (Provident fund) members are likely to get a lower rate of interest on their PF accumulations this financial year, but a senior official said the total returns would be on a par with or more than last time as they stand to gain from the fund’s move to unitise its equity investment.
The official said the central board of trustees (CBT) of the Employees’ Provident Fund Organisation (EPFO) will meet on 23rd November to consider an 8.5 percent interest rate for the financial year 2017-18. Last year, Interest was fixed at 8.65%.
At the meeting, the board will also give its go-ahead for unitisation of EPFO’s investment in equities, the official said, speaking on the condition of anonymity. (As quoted in Economic Times)
The official added, “It is difficult to retain the interest rate at the existing levels as the new securities are being bought at a lower rate while the 20-year-old securities are nearing maturity”.