EPF vs mutual funds: Why EPFO says your provident fund should remain foundation of retirement planning

EPFO advised salaried employees against withdrawing EPF savings to invest in mutual funds, stating the two serve different financial objectives.

EPF is a statutory social security scheme with retirement, pension (EPS), and insurance (EDLI) benefits, while mutual funds are market-linked and voluntary.

EPF earns an annual government-set interest rate with stable, predictable returns and automatic monthly contributions for disciplined savings.

EPF members receive lifelong pension after retirement, and families may get pension and insurance coverage up to ₹7 lakh upon the member's death.

EPFO emphasized that EPF combines retirement savings with social security benefits, including both employee and employer contributions.