EPFO: World’s most expensive fund

The Employees’ Provident Fund Organisation (EPFO) operates the most expensive government securities mutual fund in the world, at a cost of 446 basis points—employers are required to pay expenses of 1.16% of salary or 4.46% of contributions. This means EPFO costs 10-20 times more than any public or private government securities mutual fund in the world. Why? Because EPFO is a monopoly that does not have clients, but hostages. How? Because it makes employers pay a separate cheque for expenses directly into its own account so that these costs do not show up in—or reduce—individual accounts.

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