Separating equity, debt units will benefit EPFO subscribers

In case of early withdrawal, they will be able to choose the instrument from which they wish to redeem

The Employees’ Provident Fund Organisation (EPFO) on Thursday cleared a new accounting policy for its equity-linked investments. Under the policy, the 15 per cent of PF contributions parked in equities will be allotted as mutual fund units to all the subscribers. These units can be redeemed by subscribers when they exit or withdraw the accumulated money. The EPFO has been investing in equities for over two years but there was no consensus on how the gains from this would be passed on to investors. 

It has now decided this will be done by allocating units to each subscriber. “Now, a subscriber