New Delhi, Oct. 29 -- The Employees' Provident Fund Organisation (EPFO) is working on guidelines to invest in alternative investment funds (AIFs), including those that finance startups, potentially opening a new avenue for deploying workers' retirement savings.

The proposal, which could allow the retirement fund body to diversify its portfolio beyond traditional investments, is expected to be placed before its Central Board of Trustees in November, according to a report by The Times of India published on 29 October.

The move comes five years after the government permitted EPFO to invest in AIFs. However, the retirement fund body has yet to begin investing in Securities and Exchange Board of India (Sebi)-regulated Category I and Category...