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Group Gratuity Fund Advisory | Kapadia Global

At KAC, our expert team regularly monitors different funds and their performances to provide the best insight and portfolio mix relevant to our clients. 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. Visit the website to know more!<br>

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Group Gratuity Fund Advisory | Kapadia Global

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  1. Is a Combination of + CLIENT’S EXPECTATIONS REGULATIONS Rule 67 (2) of Income tax act, 1961 • Risk Profiling • Expected Target Return • Expected Funding Level 45% - 50% 35% - 45% 5% - 15% 0 - 5 % GovtDebts Corporate Debts Equities Liquid Funds -----------------------

  2. We, at Blackbox believe that investments should be chosen based on the specific needs and objectives of the client. It is a very customized service which primarily depends on the following factors: Tax and Asset Regulation Time of Investment Investment Horizon Return Expectation in cognisance with Risk Tolerance

  3. A portfolio mix consisting of Debt securities, Debt mutual funds, Equities and Equity mutual funds is recommended based on the above criteria. Each Asset class is further appraised to pick out the best funds in line with our investment philosophy. MUTUAL FUNDS SECURITIES • Blackbox Debt Finder • Our Proprietary Debt model • BlackboxEquity Finder • Our Proprietary Equity model • Debt and Equity Securities • (Our Expert Fundamental and Technical Research team)

  4. Particulars Date BlackBox Insurer Difference Fund size as of 1,00,00,000 1,00,00,000 1/04/2014 1/04/2015 10,00,000 10,00,000 1/04/2016 Annual Contribution 10,00,000 10,00,000 1/04/2017 10,00,000 10,00,000 10,00,000 10,00,000 1/04/2018 Fund size as of 23,72,661 2,02,90,855 31/12/2018 1,79,18,194 9.45% 3.05% 6.40% XIRR It can be observed from the table, a Client has saved more than 250% of the Annual Contribution of INR 10,00.000 over 4 Year Time Horizon *Kindly note that the Fund Performance shared is an indicative number from a LIC report prepared YOY. Also note that the fund performance for BlackBox has been assumed using a backtested model as per rule 67(2)

  5. Particulars BlackBox Insurers Fees Asset Allocation Strategy Risk Profiling & Target Return Expectation Study Expert Advice ---------------------------------------------------------------------------------- Funding Report Flexibility Management Reporting Leads to Management discussion and involvement No Reporting & hence no involvement of Management

  6. Insurers BlackBox Particulars Fund Surrender Insurance Tactical Asset Allocation Market volatility and Long Term nature of liabilities present scope for Tactical Asset Allocation Strategies to earn higher returns which are exploited by us Benefits of Tactical Asset Allocation due to market volatility & Long term nature of liabilities may not be passed on to you as actual investments returns are an unknown --------------------------------------------------------------------------------------------------- Long term Outperformance 1% to 3% outperformance could lead to 20% to 40% savings in annual contributions Out performance gains are eaten up as investment risk is transferred to the insurer Management Support No Clear Structure available for Management support Being Client Centric, we are always available to answer client queries Independence No independence in choice of investments as they are restricted to Insurer’s own funds All Investment avenues open including insurers

  7. Particulars BlackBox Insurers Fees Employee time cost and attrition rates make this a more costly affair 0.25% to 0.50% of the Fund Value Asset Allocation Strategy General Allocation Strategy. No Attention paid to Client’s Risk profile & Expectation Fitted in line with Liability Cashflows & Target Return Expectations ---------------------------------------------------------------------------------- Not Considered at any time Risk Profiling & Target Return Expectation Study Considered at the time of engagement and milestone events Expert Advice No advice or Strong decisions taken because of fear of responsibility Advice is Client Centric, Objective & Responsible Funding Report No Funding Report provided and hence difficult to gauge fund performance Periodic Access to Fund Performance & Review

  8. Particulars BlackBox Insurers Flexibility Flexibility in the choice of Investments & Contributions No Flexibility in choice of Investment and Contributions Tactical Asset Allocation Market volatility and Long Term nature of liabilities present scope for Tactical Asset Allocation Strategies to earn higher returns No risk bucketing or no  client centric asset allocation or lack of expertise limit the opportunities to generate alpha returns ---------------------------------------------------------------------------------- Long term Outperformance Out performance gains are eaten up as investment opportunities are not exploited because of fear of responsibility 1% to 3% outperformance could lead to 20% to 40% savings in annual contributions Responsibility Management takes the responsibility of fund Management BlackBox takes the responsibility of Fund Management Investment Guidelines Management needs to ensure that funds are allocated in line with Investment Guidelines Blackbox ensures that funds are allocated in line with Investment Guidelines

  9. Lower Fund Management Fees • Higher Risk Adjusted Returns • No Surrender Fees • 20% - 60% contribution savings for a mature scheme FUND OUTPERFORMANCE HASSLE FREE ADMINISTRATION & SECURITY • Simplified Claims Management • Fund is always under direct control of the Trustees • Easy to Wind Up / Transfer Funds • CustomisedAsset Management Strategy • We always put Client’s Interest First CLIENT CENTRIC APPROACH

  10. Investment Fund Advisory for Group Gratuity Trusts is a niche areaand being in theEmployee Benefits Space for more than 40 years, gives us a competitive advantage • The Team is headed byMr. Jenil Shahwho is a Chartered Accountant, an Actuary and SEBI Registered Investment Advisor by Qualification • Weregularly monitor different funds and their performancesto provide the best insight and portfolio mix relevant to our clients • We have anIn-house Equity Research Team • We are always available for you in the area of Employee Benefit • (Group Gratuity) Consulting. We are consulting more • than 2000 clientson different • aspects of Employee Benefits

  11. Operational Support Services • Investment Account Opening Support • Investment Transaction Support Reporting Services Advisory Services • Risk Profile Report • Periodic Contribution Report • Investment Recommendation Report • Portfolio Holding Report • Portfolio Recommendation Report • Rule 67(2) Compliance Report

  12. Group Gratuity Trust Formation Future Service Gratuity Insurance Actuarial Valuations Group Gratuity Fund Management & Claims Settlement

  13. JenilShah, Director, BlackBox FS +91 98670 75522 | jenil.blackbox@gmail.com JayeshChoudhary, Director, BlackBox FS +91 99690 70406 | jayesh.blackbox@gmail.com Krishna Ganatra, CEO, BlackBox FS +91 98331 36069 | krishna.blackbox@gmail.com Address: 001, 1st Floor, VishnupriyaCHS, Opp. Veer Savarkar Garden Gate no. 2, Borivali (W), Mumbai 400 092

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