Investment Support — Corpus Invested Within the Rules.
An approved gratuity fund's corpus can't just sit anywhere — investments must follow the prescribed pattern for such funds. We advise trustees and monitor allocation against those rules.
Contact UsApproved gratuity funds are required to invest their corpus in line with an investment pattern prescribed for such funds, broadly aligned with the pattern applicable to provident and superannuation funds — a mix of government securities, debt instruments, and other permitted categories, with defined allocation ranges. This isn't discretionary; it's a condition tied to the fund's approved status, and deviating materially from the prescribed pattern is a compliance issue independent of investment performance.
In practice, most gratuity trust corpus is held through an insurer's group gratuity policy, where the insurer manages the underlying investment within its own regulated fund options — but trustees still carry the responsibility of selecting an appropriate fund option and confirming, at least at a high level, that the underlying allocation is consistent with what's required for an approved fund.
We support trustees with this — reviewing the trust's current investment/fund option against the prescribed pattern, coordinating with the insurer on allocation reporting, and flagging where the trust's investment approach needs trustee attention or a formal decision.
Our Investment Support Services
Investment Pattern Compliance Review
Reviewing the trust's current investment allocation against the pattern prescribed for approved gratuity funds.
Insurer Fund Option Advisory
Advising trustees on selecting an appropriate insurer fund option consistent with prescribed allocation norms.
Allocation Reporting Coordination
Coordinating periodic allocation reports from the insurer/fund manager for trustee review.
Deviation Flagging & Correction Advisory
Flagging where current allocation has drifted from the prescribed pattern and advising on correction.
Trustee Investment Decision Documentation
Drafting trustee resolutions documenting investment-related decisions for the fund.
Multi-Insurer/Fund-Manager Comparison
Comparing available insurer or fund manager options where trustees are considering a change.
Regulatory Update Tracking
Tracking changes to the prescribed investment pattern rules and advising trustees accordingly.
Annual Investment Review Support
Supporting the annual review of the trust's investment approach alongside the actuarial valuation cycle.
Our Process
Current Allocation Review
We obtain the trust's current investment/fund allocation from the insurer or fund manager for review.
Prescribed Pattern Comparison
The current allocation is compared against the prescribed investment pattern for approved gratuity funds.
Deviation Assessment
Any deviation is assessed for materiality and discussed with trustees for a correction decision if needed.
Trustee Decision & Documentation
Trustees formally decide on any allocation change, documented through a resolution.
Ongoing Monitoring
Allocation is reviewed periodically (typically annually) as part of the trust's regular compliance cycle.
Why It Matters
Frequently Asked Questions
Not sure your trust's investments meet the prescribed pattern?
We'll review your current allocation against the rules and flag anything trustees need to act on.
