n NISM Certifications
X NISM Series X
Medium

Why should an employee transfer their EPF corpus to a new employer after changing jobs?

Practice question from NISM Series XB- Investment Adviser (Level 2) Mock Test 4 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    To avail higher interest rates

  2. To avoid losing the benefit of compounding

    Correct answer

  3. C

    To prevent the old employer from paying the amount later

  4. D

    Due to PFRDA rules

Why this is the answer

Transferring the EPF balance ensures continued compounding over the long term, maximizing retirement savings; failure to transfer results in missed growth opportunities.

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