Index Fund Corner
Sponsored
| Scheme Name | 1-Year Return | Invest Now | Fund Category | Expense Ratio |
|---|---|---|---|---|
| Axis Nifty 50 Index Fund | +32.80% | Invest Now | Equity: Large Cap | 0.12% |
| Axis Nifty 100 Index Fund | +38.59% | Invest Now | Equity: Large Cap | 0.21% |
| Axis Nifty Next 50 Index Fund | +71.83% | Invest Now | Equity: Large Cap | 0.25% |
| Axis Nifty 500 Index Fund | — | Invest Now | Equity: Flexi Cap | 0.10% |
| Axis Nifty Midcap 50 Index Fund | +46.03% | Invest Now | Equity: Mid Cap | 0.28% |
How is the EPF rate decided?
Every year, the Employees’ Provident Fund Organisation (EPFO) works with the CBT and the Ministry of Finance to decide the interest rate for the EPF. The CBT is headed by the Union Labour Minister.
The CBT evaluates and suggests the PF interest rate by taking into account the profits from EPF investments, including interest received on securities and bonds. The regulatory authority also considers the previous year’s interest rate and market trends.
The Ministry of Finance reviews and approves the proposed rate after it’s finalised by the CBT. Various factors, including inflation, market interest rates, the impact on government budgets, and the state of the economy, affect the proposed rate.
The Finance Ministry has the authority to raise concerns and propose changes. Following the Finance Ministry’s approval, the interest rate is officially announced and credited to EPF accounts at the end of the fiscal year.
EPF Interest Rate Over the Last 10 Years
The EPF interest rate was highest in FY 2015-16 at 8.80% and the lowest in FY 2021-22 at 8.10 %.
| Financial Year | EPF Interest Rate (in percent) |
| 2024-25 | 8.25 |
| 2023-24 | 8.25 |
| 2022-23 | 8.15 |
| 2021-22 | 8.10 |
| 2020-21 | 8.50 |
| 2019-20 | 8.50 |
| 2018-19 | 8.65 |
| 2017-18 | 8.55 |
| 2016-17 | 8.65 |
| 2015-16 | 8.80 |
Factors Affecting EPF Interest Rate
EPFO primarily makes investments in corporate bonds and government securities. Inflation, market interest rates, and inflation also play a major role in determining EPF rates.
Higher returns enable a higher interest rate for the EPF. To maintain financial stability, the EPF rate may be reduced if returns are lower.
(Edited by : Sudarsanan Mani)
