All fund managers aim to deliver superior returns to investors, but few consistently achieve this over time. Several factors, including the fund manager’s skills, affect returns generated on the invested corpus. However, the Employees’ Provident Fund Organisation (EPFO), the country’s largest retirement fund, to which organised-sector employees contribute a part of their monthly salary, has been consistently giving superior returns to its contributors. For 2024-25, for example, it declared a return of 8.25 per cent while the average yield on 10-year government bonds was 6.86 per cent during the year. Given that the EPFO invests largely in government
Friday, December 05, 2025 | 10:05 PM ISTहिंदी में पढें
EPFO's returns shine brighter than bonds, but are they built to last?
The EPFO manages or oversees a retirement corpus worth about ₹25 trillion, which is expected to grow sharply as India's workforce becomes more formalised
 "To enhance its equity exposure and earn a greater income for its nearly 70 million subscribers, the Employees' Provident Fund Organisation (EPFO) is slated to take a call on reinvesting 50 per cent of the redemption proceeds of exchange-traded funds")
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Equity investment should be with a long-term view. Gains cannot be booked to give fixed returns to investors simply because this cannot be sustained over a long period. (Illustration: Binay Sinha)
