BS EDIT: Funding Retirement

By Business StandardPublished On Oct 16, 2025

A Strong Return, but at What Cost?

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

The Equity Dependence Risk

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

RBI Steps In to Review Strategy

To address these concerns, EPFO asked the RBI to examine its fund management. The RBI urged modern portfolio practices and professional oversight

Managing a Massive Corpus

EPFO oversees nearly ₹25 trillion—set to grow rapidly. Managing such long-term savings demands transparency, skill, and clear governance

Building Trust Through Clarity

Returns should mirror market performance, not political priorities. EPFO must also help subscribers understand that returns can vary with conditions

Reform for the Future

By implementing RBI’s recommendations, EPFO can become a modern, transparent, and professionally managed fund—fit for India’s future retirees