EPFO’s 8.25% return in 2024–25 beat the 10-year bond yield of 6.86%. Yet with most funds in bonds, the consistency of such high returns is in doubt
EPFO bridges its return gap by booking equity gains. But stock markets are volatile, and using short-term profits to fund steady payouts is unsustainable
To address these concerns, EPFO asked the RBI to examine its fund management. The RBI urged modern portfolio practices and professional oversight
EPFO oversees nearly ₹25 trillion—set to grow rapidly. Managing such long-term savings demands transparency, skill, and clear governance
Returns should mirror market performance, not political priorities. EPFO must also help subscribers understand that returns can vary with conditions
By implementing RBI’s recommendations, EPFO can become a modern, transparent, and professionally managed fund—fit for India’s future retirees