Kapadia Actuaries & Consultants is a leading Actuarial Consulting Firm in India. With our headquarters in Mumbai, the Financial Capital of India, we are spread across the geographical bounds of the country and have a strong presence at five locations in India – Pune, Ahmedabad, Hyderabad, Bangalore, and Chennai. To know more, visit our website!
Actuarial Valuation Consultants in Mumbai | Kapadia Global
1.
2. Is a Combination of
REGULATIONS + CLIENT’S
EXPECTATIONS
Rule 67 (2) of
Income tax act, 1961
45% - 50%
35% - 45%
5% - 15%
0 - 5 %
Govt Debts
Corporate Debts
Equities
Liquid Funds
-----------------------
• Risk Profiling
• Expected Target Return
• Expected Funding Level
3. 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:
Investment
Horizon
Time of
Investment
Return Expectation in
cognisance with Risk
Tolerance
Tax and Asset
Regulation
4. 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
• Blackbox Debt Finder
Our Proprietary Debt model
• Blackbox Equity Finder
Our Proprietary Equity
model
SECURITIES
• Debt and Equity Securities
(Our Expert Fundamental and
Technical Research team)
5. Particulars Date BlackBox Insurer Difference
Fund size as of
Annual
Contribution
Fund size as of
XIRR
1/04/2014
1/04/2015
1/04/2016
1/04/2017
1/04/2018
31/12/2018
1,00,00,000 1,00,00,000
10,00,000
10,00,000
10,00,000
10,00,000
2,02,90,855
9.45% 6.40%
1,79,18,194
10,00,000
10,00,000
10,00,000
10,00,000
23,72,661
3.05%
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)
6. 0.25% to 0.50% of the Fund Value 0.8% to 1.5% of the Fund
Value
Fitted in line with Liability Cashflows &
Target Return Expectations
Considered at the time of
engagement and milestone events
Advice is Client Centric, Objective &
Responsible
Periodic Access to Fund
Performance & Review
Flexibility in the choice of
Investments & Contributions
Leads to Management
discussion and involvement
General Allocation Strategy. No Attention
paid to Client’s Risk profile & Expectation
Not Considered at any time
No advice
No Funding Report provided, only year-end
performance declared
No Flexibility in choice of
Investment and Contributions
No Reporting & hence no
involvement of Management
----------------------------------------------------------------------------------
Particulars BlackBox Insurers
Fees
Asset Allocation Strategy
Risk Profiling & Target
Return Expectation Study
Expert Advice
Funding Report
Flexibility
Management Reporting
7. No question of Surrender as funds
are under management discretion at
all times
Surrender is a complex and time
consuming event, requires approval
from CIT
Future Service Gratuity (Group Term
Insurance) Quotes can be requested
from different insurers
---------------------------------------------------------------------------------------------------
Particulars BlackBox Insurers
Market volatility and Long Term
nature of liabilities present scope for
Tactical Asset Allocation Strategies to
earn higher returns which are
exploited by us
1% to 3% outperformance could
lead to 20% to 40% savings in
annual contributions
Being Client Centric, we are always
available to answer client queries
All Investment avenues open
including insurers
Management Support
Independence
Future Service Gratuity premiums
high as choice of insurer is not
available
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
Out performance gains are eaten up as
investment risk is transferred to the insurer
No Clear Structure available for
Management support
No independence in choice of
investments as they are restricted
to Insurer’s own funds
Fund Surrender
Insurance
Tactical Asset
Allocation
Long term
Outperformance
8. ----------------------------------------------------------------------------------
Particulars BlackBox Insurers
0.25% to 0.50% of the Fund Value
Fitted in line with Liability
Cashflows & Target Return
Expectations
Considered at the time of
engagement and milestone events
Advice is Client Centric, Objective &
Responsible
Periodic Access to Fund
Performance & Review
Employee time cost and
attrition rates make this a
more costly affair
General Allocation Strategy.
No Attention paid to Client’s
Risk profile & Expectation
Not Considered at any time
No advice or Strong decisions taken
because of fear of responsibility
No Funding Report provided and hence
difficult to gauge fund performance
Fees
Asset Allocation
Strategy
Risk Profiling & Target
Return Expectation
Study
Expert Advice
Funding Report
9. Particulars BlackBox Insurers
Flexibility in the choice of
Investments & Contributions
Market volatility and Long Term
nature of liabilities present scope
for Tactical Asset Allocation
Strategies to earn higher returns
1% to 3% outperformance could lead
to 20% to 40% savings in annual
contributions
BlackBox takes the responsibility of
Fund Management
Blackbox ensures that funds are
allocated in line with Investment
Guidelines
No Flexibility in choice of
Investment and Contributions
No risk bucketing or no  client
centric asset allocation or lack of
expertise limit the opportunities
to generate alpha returns
Out performance gains are eaten up as
investment opportunities are not exploited
because of fear of responsibility
Management takes the responsibility
of fund Management
Management needs to ensure that
funds are allocated in line with
Investment Guidelines
----------------------------------------------------------------------------------
Flexibility
Tactical Asset
Allocation
Long term
Outperformance
Responsibility
Investment Guidelines
10. FUND
OUTPERFORMANCE
• Lower Fund Management Fees
• Higher Risk Adjusted Returns
• No Surrender Fees
• 20% - 60% contribution savings for a mature scheme
HASSLE FREE
ADMINISTRATION &
SECURITY
• Simplified Claims Management
• Fund is always under direct control of the Trustees
• Easy to Wind Up / Transfer Funds
CLIENT CENTRIC
APPROACH
• Customised Asset Management Strategy
• We always put Client’s Interest First
11. • Investment Fund Advisory for Group Gratuity Trusts is a niche area and being
in the Employee Benefits Space for more than 40 years, gives us a
competitive advantage
• The Team is headed by Mr. Jenil Shah who is a Chartered Accountant, an
Actuary and SEBI Registered Investment Advisor by Qualification
• We regularly monitor different funds and their performances to provide the
best insight and portfolio mix relevant to our clients
• We have an In-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 clients on different
• aspects of Employee Benefits
