The Employees' Provident Fund Organisation (EPFO), India's biggest pension fund, aims to pay 8.5 percent interest to its 40 million-plus subscribers for 2009/10, as new fund managers have helped it earn better returns, a top labour ministry official said on Thursday.
Rising inflation prompted the central bank to raise interest rates until September, pushing up returns on fixed income investments, including government bonds, which form a bulk of the fund's investments.
The global slump that followed the financial crisis in the second half of the fiscal trimmed India's factory output and exports, forcing firms to slash jobs for cutting losses.
Pillai ruled out the possibility of investing a portion of 2.9-trillion-rupee corpus of the pension fund in equity market in near future. "Equity market, see, they (EPFO) will not go for it because of large.
Rising inflation prompted the central bank to raise interest rates until September, pushing up returns on fixed income investments, including government bonds, which form a bulk of the fund's investments.
The global slump that followed the financial crisis in the second half of the fiscal trimmed India's factory output and exports, forcing firms to slash jobs for cutting losses.
Pillai ruled out the possibility of investing a portion of 2.9-trillion-rupee corpus of the pension fund in equity market in near future. "Equity market, see, they (EPFO) will not go for it because of large.
Source url : http://in.reuters.com/article/businessNews/idINIndia-39940820090529