Ever wondered what happens with your PF account, money? Find out

Everyone knows that they are supposed to get interest on the provident fund money. But, have you ever wondered where this money is coming from? The EPFO is investing in Exchange Traded Funds (ETFs) based on Nifty 50, Sensex, Central Public Sector Enterprises (CPSEs) and Bharat 22 Indices. However, it doesn't invest in shares and equities of individual companies, revealed Santosh Gangwar, Minister of State (MoS), Ministry of Labour and Employement, Government of India.

In a written reply to a question in the Lok Sabha, Santosh Gangwar said on Monday, "The total amount invested by EPFO in ETFs as on September 2019 is Rs. 86,966 crore. The Central Board of Trustees (CBT), Employees’ Provident Fund (EPF) in its 207th meeting held on 31.03.2015 decided to invest only in ETFs in the category of equity and related investments."

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The Employees’ Provident Funds & Miscellaneous Provisions (EPF & MP) Act, 1952 is applicable to every establishment employing 20 or more persons which is either a factory engaged in any industry specified in Schedule–I of the Act or an establishment to which the Act has been made applicable by the Central Government by notification in the Official Gazette. 

In order to extend social security benefits to all the eligible workers in the country, continuous efforts are made to bring the coverable establishments under the EPF & MP Act, 1952 and also for bringing the eligible employees under the umbrella of Schemes under the Act. As on 31.03.2019, 197 industries/classes of establishments are notified for coverage which has brought 4.69 crores contributory members within the ambit of EPF.