BEIJING - China's State Council, the cabinet, announced on Wednesday that it will broaden the investment scope of the nation's social security fund in order to disperse risks and increase the fund's investment returns.

The fund will be allowed to invest in local government bonds and corporate bonds, meanwhile, the maximum share of investment on these two kinds of bonds will be raised to 20 percent from 10 percent previously, according to a statement released after a State Council executive meeting presided over by Premier Li Keqiang.

The fund's direct equity investment will be allowed in not only centrally-administered enterprises, but also their subsidiaries as well as credit-worthy private firms, the statement said.

Meanwhile, the upper limit of the fund's trust loan investment will be raised to 10 percent from 5 percent, with orientations toward projects such as affordable housing and municipal infrastructure.

The government will also allow the fund to directly invest in interbank certificates of deposit and manage such investment as bank deposits.

Founded in 2000, the fund is designed to solve China's aging problem as well as being a strategic reserve to support future social security expenditure.

Official data showed the fund gained $22.7 billion from investment in 2014, with an 11.4 percent return on investment. The rate of return outperformed the 6.2 percent return rate in 2013.

Wednesday's State Council meeting also stressed more efficient use of fiscal and financial funds in order to boost investment and increase provision of public goods and services to impoverished rural regions.