There is common saying that whatever goes up must come down. The rules also applies for Share market. Sooner or later. History is on records. People park their hard earned savings in PF investing for long term of 15 years or additioonal 5 years. How the Govt. can ensure steady growth of peoples hard earned money over such a long duration? Today India's growth story may be attracting FII money. But what about 2, 3 or may be 5 yars from now ? Once FII starts withdrawing their money, which is an essential in the market, where would share market shall go , can be anybodys guess? PF money should not be invested in any speculative markets including Shares.-thanks-Manoj
The amount should be invested in Shares, as it is goodway of making money.At the sametime Indian Govt should not put over-burden rules and regualtions over the maturity amount by fooling the people with cock and bull stories. The Indian Govt Finance Dept is always trying to pull middle-class and salaried people esp private sectors, which is very bad. Most of the money is been lost at 1. Customs 2. State Transports 3. Money spent on Govt eg: Political Security, facilities etc
I think we should debate about whether private PF management should be allowed or not. Incremental 5% in stocks is ok. But what is more important is the EPFO's ability to manage our money effectively. Time and again they have displayed they have neither the expertise nor the experience to manage public money effectively. EPFO is a bureaucratic organisation run on Govt fiats. No initiative or imagination. The service we reseive from EPFO can only be termed pathetic. But look at the service we get from Mutual funds. diffeerence is stark. It is high time Govt allows private managers in PF management. private managers are already managing public money in Banking, Insurance, Mutual funds arena...... Why not PF? Why should the employees be denied the right of choice?? We are not satisfied with EPFO.. WE WANT OPTIONS.. What do you say??
RE:Privatise PF Management ?
by pankaj chokshi on Feb 11, 2007 06:26 AM Permalink
yes, Govt should all Pf funds to stock market by that Pf Trustee can give more rt=eturns to there Members
dear sir, your write up is exce,llent but we indians have always an eye on other people's money and do badly if the same belong to the poor--as long as PF has to meet the liabilitiesd, it needs to create capital and investments in sjares may give it a gi=ood chance in indua for the next decade--let the investors be guaranteed their total baop the interest and the commissioner of PF can do what he wants wiothin the framework of his dept.--thanks-rajaram
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I thing govt should give flexible PF option to employees. If I can handle my own investments, then why govt bother abt this. This PF shud be made optional with flexible debt-equity ratio. Risk adverse can always choose 100% debt PF. Employees/public shud be the king.
PF and pension funds are long term public debt instruments of the Govt.It is the business of the govt to invest in public goods that will boost the GDP and in turn enable higher tax returns for discharging the public debts. PF and pensions liability is to be discharged from budgetary allocations only.The Govt cannot be seen to indulge in market behaviour as a player when it is simultaneously a regulator.The Govt cannot act as another Mutual Fund operator and invest the hard earned money in risky investments. The poor management of the US-64 scheme is a telling lesson. If paying pensions is assuming a long standing liability then it can offer a cumpolsory commutation of the pension for existing and future pension holders. There are horror stories of people trying to get their monthly pension and it is time that outmoded pension system is laid to rest and replaced by modern old age packages.
No,I think it is against the very purpose of setting these schemes as these schemes support the employees at the time of need.Employees themselves go for the investment in stock market if they are ready for this.These are small contribution kept aside for meeting specific needs.Stock market looks a good avenue during rise but at the time of fall it can brinf havoc.Altough move is to invest only 5% but still I think that will not a good one to put such type of funds in riskier avenues.
It is good to invest 5% of pf in "stock market", this mere 5% may result in higher returns and it may be sustainable by individuals even if the market falls as the invest ratio is less (5%). This is good move at present scenario when India is growing.
I do not want to get into controversy of yes or no, But just ask one question with those who are against it. Will the returns otherwise be sufficient for Future need. Just look at inflation rate and returns then decide yourself.
