Personal Finance: EPFO’s proposal to lower rates makes ETF investing more compelling – Moneycontrol

Investors could ramp up equity allocation through Exchange Traded Funds to enhance portfolio returns at a time when the secure EPF returns are set to come down

Nilanjan Dey

March 14, 2022 / 08:45 AM IST

In an era marked by high inflation and an anticipated hardening of interest rates, moderate returns yielded by debt securities may yet prove to be the Employees’ Provident Fund Organisation’s (EPFO) biggest bane. Debt accounts for an overwhelming share of the organisation’s mandated investment pattern. Even the newly-proposed rate of 8.1 per cent, the lowest in over four decades, may be a challenge, if the EPFO does not fortify its nascent association with equity and alternate asset classes, all…


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