7 ways to Invest your EPF Fund Smartly

Many people invest in EPF either voluntarily or involuntarily as several organizations make it mandatory for their employees to open a PF account. However, most of them don’t know what to do with the EPF money once it matures. Some of the best investment options that will help you to invest your EPF money smartly are given below:

National Pension Scheme 

If you choose to withdraw your EPF prematurely due to unemployment or any other reason, you can invest some of the funds in the National Pension Scheme. It is a government-run scheme just like EPF and also offers high returns to the investors. It is prudent to invest in NPS as part of the maturity amount will be paid to you directly upon retirement and the remaining part will go into a pension scheme that will provide you a monthly pension. 


Senior Citizen Saving Scheme is a saving option meant especially for senior citizens. It comes with a high interest rate and many lucrative options. Therefore, investing EPF funds in SCSS is a wise decision especially for those who withdraw their entire PF fund after retirement. 

Investing in shares 

If you have a good idea and understanding of shares and the stock market, then you can invest a part of your EPF funds in shares. This will not only multiply your funds but will also enable you to safeguard your future. However, it is better to shun this idea if you have no idea or experience in share trading. 

Real estate 

Most people think of buying a property with their EPF funds. However, it will be of no use if you buy a house for yourself with your EPF money. Instead, it is better that you buy a property and rent it or give it on lease to gain monetary benefits from it. 

Debt Mutual Funds 

Investing your EPF money in debt mutual funds is not a bad idea as they invest your invested corpus in treasury bills, corporate bonds, and other fixed-income instruments. As a result, they are less riskier than equity funds. 

Bank FDs 

Bank FDs are safe and mostly preferred by senior citizens who don't want to invest their EPF funds in money market instruments. However, bank FDs will not provide favorable returns in the present scenario as their FD rates are far below expectations. Therefore, it would be better to go for a tax-saving fixed deposit to maximize your returns by saving taxes. 

Corporate FDs 

Investing your PF funds in company FDs like Bajaj Finance FD is a smart move as it is offering an FD interest rate of up to 7.25%. Also, its flexible tenor ranging from 12 to 60 months will enable you to strategize your financial plans smartly. 

A part of your funds can be invested in non-cumulative FDs so that you can get regular interest payouts to handle your additional expenses. Also, the remaining part can be locked-in a cumulative FD of a longer tenor to multiply your corpus steadily. 

It is a wise thing to invest in its FD plans as it offers 0.10% to those who utilize an online FD form to invest and senior citizens get a 0.25% additional interest rate irrespective of whether they choose the online or offline investment method. 

Bajaj Finance Fixed Deposit scheme provides simple premature withdrawal policies and also offers a loan against FDs. Therefore, you can now manage your sudden expenses without any worries. Investing in its FD plans is safe as credit rating organizations such as ICRA and CRISIL have accredited it with high ratings on stability and safety.

EPF funds prove to be useful after retirement or during the period when you are unemployed and need funds urgently. However, it is better that you invest your PF money smartly in instruments like NPS, shares, debt funds, SCSS, etc. so that you can utilize it in the future. One of the best ideas is to lock-in your EPF corpus in corporate FDs like Bajaj Finance FDs that are offering an interest rate of up to 7.25%. The option of investing online and flexible tenor range will enable you to invest your EPF fund wisely. Also, you can utilize the different FD types it offers to take care of your present fund needs and future plans simultaneously.