AMN
The Employees’ Provident Fund Organisation (EPFO) has reported a significant increase in its investible corpus, which has more than doubled over the past five years, reaching an impressive ₹24.75 trillion. This remarkable growth can be attributed to various factors, including an increase in active subscribers and strategic investment decisions.
Growth in Subscribers
The number of active contributing subscribers has also seen a substantial rise, growing by 7.6% to 73.7 million in the fiscal year 2024, compared to 68.5 million in the previous year. This increase reflects the growing awareness and participation of employees in the EPF scheme, which is designed to provide financial security for workers post-retirement.
Investment Strategy
The EPFO’s investment strategy has played a crucial role in this growth. The organization has been diversifying its investment portfolio, focusing on long-term gains while ensuring the safety of funds. The EPFO invests primarily in government securities and bonds, which offer stable returns, thereby enhancing its overall corpus.
Factors Contributing to the Growth
Increased Subscriber Base: The growth in the number of active subscribers has been a key driver for the EPFO’s expanding corpus. More individuals contributing to the fund directly translates into a larger pool of resources available for investment.