India Life Capital to maintain 30% growth this fiscal

India Life Capital to maintain 30% growth this fiscal

India Life Capital, an independent investment and legal advisory firm for institutional pension funds, expect to retain 30% growth this fiscal, due to continued complexity in investments, and the trustees looking out for external neutral investment expertise.

Speaking to DH, Amit Gopal, Senior Vice President at India Life Capital, said, “Our revenues have grown by 30% from March 2015 to March 2016. Complexities in the investment regulation, mandatory investments in equity and increased need for governance in investments have been the driving factors.”

It currently advises a pension fund corpus of Rs 15,000 crore, comprising of more than 150 provident fund gratuity and superannuation funds. It also works extensively on regulatory issues around such funds. “We provide neutral advisory services to 150 retirement trust funds currently with Rs 27,500 crore under advisory across different industries, fund sizes and locations,” he said.

To a question on why do companies opt for a private pension trusts, Gopal said, “In-house management of trust funds can help in improving portfolio performance. Some of the exempt PF trusts have declared higher interest rates than EPFO in the recent years. There is transparency in processing transactions like settlements.”

He further added that though retirement trust funds might consume employer bandwidth, they are largely considered to be an employee-friendly initiative. He also said that more corporate will form private pension trusts. But it will require some amount of regulatory changes. The procedure to set up trusts and to obtain exemption from the government should be simplified further, along with a mechanism to have time-bound responses to applications.

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