Our indian traditional saving method are not sufficient for our future need. Changing market environment are asking us to accept this very good move of government, we should go for it. i belive the rate of return is more than pf interest.
100% YES. Good move. This makes consistent money to flow into the markets and the market will be less vulnerable to crashes when FIIs pull back huge money (May'06 crash). All states should participate in this.
this is the one thing govt.has done right after a long time.all those visitors who have posted there comment against pf investment in stocks should understand that why should the govt.give such a high return to pf investors when even the govt.can't afford that high return.instead,govt.should hike the limit from 5% to 10%.speculation is a part of the game of stock market,and many a times is very rewarding
RE:very good move by Govt
by on Jan 24, 2007 06:09 PM Permalink
I believe rate of return 8 or 8.5% on PF continues to be guaranteed. So this move in short term should not impact people who are retiring now.
PF is meant for old age. It's individual hardwork for there entire life of career. Govt has not rights/permission to touch PF. What if markets goes down, do we get that money back or Govt will give us.
Every Indian is bound to pay Income Tax, Road Tax, VAT for all we buy,there are so many ways where the Govt is making money & now why there eyes are on PF.
RE:No, PF should not be touched
by on Jan 25, 2007 11:41 AM Permalink
First of all, employees should have the option to choose and it should be have funds like, 100% debt option, 90% debt-10% equity, the way ULIP schemes do and to be managed by professional, not by politicial. And for those, who thinks, current returns are guranteed. It is because, when I deposit my money in PF/PPF, that money is used to pay the person, who withdraws. If govt has to give assure return of 8-9%, then we'll be in the age again, when we used to borrow from IMF.
PF IS USED FOR POST RETIREMENT. HENCE I STRONGLY FEEL IT MUST NOT BE TOUCHED. IF THE GOVT HAS KIND HEART LET THEM INCREASE THE PF RATE BUT MUST NOT INVEST IN MARKET AND MAKE PORTION OF THE PF FUND VOLATILE.
RE:DON'T PLAY WITH PF
by Nilotpal Pathak on Jan 24, 2007 06:16 PM Permalink
Which age are you living in? In any case it is only 5% of the corpus. I feel it should be increased to 25% of the corpus. Why poor Government employees be denied the benefit of appreciation in market.
No this should not be done. PF is only source for Livelihood in old age. In stock market there is lot of risk. If Govt. can give fixed returns then its ok...
