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Should I consider my EPF investments as the debt part of the portfolio?

Dhirendra Kumar advises including EPF as a part of your debt portfolio but rebalancing may remain a missing element

Is it wise to consider the amount in EPF/gratuity as a part of my debt allocation and continue my future investments more in equity mutual funds?
- Balaji

Yes, it is because it is debt only, especially if you're making an investment in PPF, EPF or gratuity entitlement. I would like to add that gratuity entitlement is actually not an investment in one sense because you don't get the investment value. It's rather an entitlement that for every year of your service, you'll get the salary of 15 days when you leave your job or when you retire. But it should be considered as a fixed-income allocation when you're totalling up. The only problem is that you can't do any rebalancing with these investments.

If you have chosen to have 50 per cent into equity and 50 per cent into debt, you really can't do much about it if your EPF allocation turns out to be 80 per cent of the total. Also, gratuity you cannot take out till you leave your job, so these are inflexible. But within the debt framework, they sure are fixed-income investments and they should be considered as one.