Corona hit on PF: it’s tough to get fastened curiosity, know whose lapse

by Jeremy Spirogis
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new Delhi. The folks of the nation can be shocked by the corona virus ie Kovid-19. Those who don’t put money into the inventory market may even get a shock. The EPFO ​​invests within the inventory market. He has suffered an enormous setback right here. Due to this, the state of affairs has turn out to be such that he can hardly pay fastened curiosity within the monetary 12 months 2019-20.

Know how large a shock

According to a report in Hindustan Times, the Employee Provident Fund Organization (EPFO) has suffered a serious setback from the inventory market. EPFO's funding of about Rs 95,000 crore is thru change traded funds (ETFs) within the inventory market. This cash is trapped as a result of sudden decline within the inventory market. <! –

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                 In such a state of affairs, there could also be an issue in paying the fastened curiosity.

How a lot curiosity to pay

The Employee Provident Fund Organization (EPFO) has introduced 8.50% curiosity for the monetary 12 months 2019-20. EPFO has about 60 million members. Due to this decline of the inventory market, now members are discovering it tough to get fastened curiosity.

Where did the error occur

The Employee Provident Fund Organization (EPFO) has invested within the inventory market. On 11 March 2020, the WHO declared coronavirus, Kovid-19, as a world pandemic. But the Employee Provident Fund Organization (EPFO) couldn’t guess this and didn’t withdraw its funding earlier than March 11. After that the inventory market fell so quick that there was no alternative once more.

Know when funding is being accomplished within the inventory market

The Employee Provident Fund Organization (EPFO) has been investing within the inventory market since 2015. EPFO initially invested 5% of a few of its funds within the inventory market. It was later prolonged. This has been elevated to 15 % in May 2017.

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