Group Gratuity Fund Investment Advisory

At KAC, our expert team regularly monitors different funds and their performances to provide the best insight and portfolio mix relevant to our clients.

Actuarial Valuation in India
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Investment Fund Advisory for Group Gratuity Trusts is a very niche area, and we are among the few firms in India having this expertise. Moreover, since we are in the Employee Benefits space for more than 30 years and have consulted more than 2000 clients, we have a competitive advantage over brokers and insurance companies.

Our expert team, under the leadership of Jenil Shah, a CA, Actuary and an Investment Advisor by profession, regularly monitors different funds and their performances to provide the best insight and portfolio mix relevant to our clients.

10 Good Reasons to have us...

  • SEBI Registered Investment Advisory Firm
  • More than 40 Years of Experience in Actuarial Valuations
  • Projection of Gratuity Liabilities & Duration based Asset Matching
  • Risk Profiling -Tools to Assess Risk Tolerance Levels
  • Customized Investment Strategy to fit the Client Risk Profile & Liability Payouts
  • Savings in terms of Management Time & Effort (Non-Core Area for the Management)
  • Regular Reporting, Funding & Performance Updates
  • Industry Research & Updates
  • Compliance & Year-End Actuarial Support
  • Lower Fund Management fees

Some facts about Group Gratuity Funds:

  • Our research shows, about 2% enhancement in the long term returns can lead to around 40% to 60% savings in the annual contributions for a mature scheme
  • Management considers Group Gratuity Fund to be a non-core area and will be interested to hire a professional firm for the Fund Management

Our Approach – Methodology

What are the Investment Options for Group Gratuity Trusts?

Self-management under PMS - as per the Prescribed Investment Guidelines for Group Gratuity Funds

This is an active management strategy. We can provide investment advisory or investment management under PMS depending on the client’s needs and objectives. Since the portfolios can be designed as per the client’s needs, this gives optimum results for the clients both in terms of safety and returns.

Management time spent and responsibility is less in this strategy.

Investment in Traditional Funds of Insurance Companies (Eg: LIC)

This is a Passive Management Strategy, involving no expertise. The returns are declared yearly, fixed and low to moderate. This strategy is less recommended as Group Gratuity liabilities are long term in nature and actuarial valuations are impacted by year on year fluctuations.

Management time spent and responsibility is less in this strategy.

Investment Unit Linked Insurance Plans (ULIPs) of Insurance Companies via an Advisory**

This is an Active Management Strategy. It requires Expertise, Research & Time, as one has to not only decide the amount of investment, but also the choice of funds to invest in. Returns are commensurate to the risks.

Management time and responsibility are more in this strategy and therefore not always recommended for the clients.