It also gave its approval to the “Vishwas Scheme,” which aims to reduce litigation. The maximum penalty damage will be 1% each month, with shorter rates applied to short-term defaults. The program will continue for six months, with the option to extend it for an additional six.
To manage the Employees’ Provident Fund Organization’s (EPFO) debt portfolio for the next five years, the Central Board of Trustees (CBT) has authorized the hiring of four asset managers: SBI Funds Management, HDFC Asset Management, Aditya Birla Sun Life AMC, and UTI Asset Management.
The Labour Minister Mansukh Mandaviya led the October 13 meeting, and an official statement after the meeting said, “This decision represents a major step towards ensuring prudent management and diversification of EPFO’s investment portfolio.”
The selections came after a year-long screening process and were based on suggestions from the EPFO’s Investment Committee. Procedural delays reportedly required three floations of the RFP.
The corpus of EPFO, excluding equity and public accounts, was ₹23.25 lakh crore as of March 31, 2025. It will continue to invest mostly in debt instruments, particularly government bonds. Trade unions continue to exercise caution when it comes to exchange-traded funds (ETFs) and equity exposure.
Today, EPFO invests 45–65% of new inflows in government securities, 20–45% in other debt instruments, 5–15% in stocks via exchange-traded funds, and up to 5% in short-term loans.
At the meeting, a report on enhancing EPFO’s investment strategy was presented by the Reserve Bank of India; it will be further examined. In order to improve fund administration and increase returns, the labor ministry has previously asked the RBI for assistance.
Trustees also spoke on increasing EPFO coverage and hiking the EPS-1995 minimum monthly pension, which is now set at ₹1,000. To determine the plans’ financial effect, an internal assessment is underway.
Additionally, by combining 13 clauses into three categories—Essential Needs, Housing, and Special Circumstances—the CBT approved the streamlining of the partial withdrawal procedures. As of right present, members may take out as much as 100% of their qualified provident fund balance.
It also gave its approval to the “Vishwas Scheme,” which aims to reduce litigation. The maximum penalty damage will be 1% each month, with shorter rates applied to short-term defaults. The program will continue for six months, with the option to extend it for an additional six.