EPFO's proposed exit policy may increase interest on your retirement saving

Finance Ministry is said to have approved the 8.65% interest rate on EPF

Retirement fund body Employees Provident Fund Organisation (EPFO) has decided to bring out an exit policy to liquidate its investments in government securities, exchange-traded funds (ETFs) and state loans to maximise returns for its members. 

The EPFO has no exit policy at present as it largely invests in government securities that have a definite maturity window.

The news comes even as the Union Finance Ministry is believed to have permitted the Labour Ministry to go ahead with 8.65 per cent rate of interest on employees' provident fund for 2016-17, which will benefit over four crore EPFO members. 

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