Tuesday, 21 September 2010

Union Labour Ministry is not ready to invest 15% of P.F Fund in Stock Market

Union Labour Minister Mallikarjuna Kharge told that his Minisrty is not ready to invest 15 percent of the funds in Provident Fund account in stock market. Now Employees Provident Fund (EPFO) is invested only five percent of the fund in stock market under the strict advice of financial consultants hired by EPFO. It is coming around Rs. 3,00,000 crore.

Mr Kharge, who is the Chairman of the Central Board of Trustees of the EPFO desired to invest only in safe recognized institutions like RBI, SBI, public sector units and other governmental organizations, which give guarantee of certain percentage of returns. They have given much importance of the P.F Fund. In his words they are not ready to take risk when it comes to the funds saved for years by the employees. PF is their lifetime savings and the only guarantees that will help them lead a comfortable retired life.

''Finance Ministry has asked us to increase the funds placed in open market to 15 per cent. But this will not happen. If the government gives us guarantee for our original capital and the returns in terms of interest or dividend, then we can see. But we cannot play into the hands of the open market'' he stressed.

Recently the interest rate is also increased from 8.5% to 9.5% in the financial year 2010-11. This move will benefit 4.70 crore organized sector workers.

Source: UNI India

Recent Posts

No comments :

Post a Comment