For the financial year 2020-21, an interest rate of 8.5 percent has been fixed for the Provident Fund account holders. It is expected that this amount will be deposited in the account of the account holders by the end of next month.
PF account will now get more interest
6 crore salaried people of the country can now get more interest on their PF. In fact, the Employees’ Provident Fund Organization (EPFO), the organization of PF, has taken a decision. According to a report in Live Mint, now EPFO is planning to invest a part of the PF of employees in Infrastructure Investment Trusts (InvITs). With this decision, the scope of investment of EPFO will increase.
The effect of increasing the scope of investment of 6 crore PF subscribers of the Employees’ Provident Fund Organization will also be seen on the interest rates they get. At the same time, this will accelerate investment in infrastructure and at the same time the scope of investment for EPFO will also increase.
At present, the Employees’ Provident Fund Organization invests the money of the PF subscriber only in bonds and government securities. But after investing in InvIT, investors will get another option. In fact, InvIT works like a mutual fund investment. Therefore, it is believed that 6 crore subscribers will get the benefit of this decision.
what is innits
InvIT’s are a similar investment option regulated by market regulator SEBI like mutual funds. In this, investors can get regular income by investing in small scale. Government sources told Live Mint that after considering the option of this investment, the investors’ money will be used in another fund and the benefits will also be available to the investors.
This is how PF holders will get benefit
For the financial year 2020-21, an interest rate of 8.5 percent has been fixed for the Provident Fund account holders. It is expected that this amount will be deposited in the account of the account holders by the end of next month. At the same time, after this new investment option, some part of the investors’ money will be put in the corpus like Innits. This is expected to give higher returns to the investors. In fact, during the budget, Finance Minister Nirmala Sitharaman had given its indications. Now the Employees’ Provident Fund Organization is considering this new option, taking forward the decision of the budget.
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