Education
Education
5-minute read /
Making informed decisions is crucial to selecting the right funds for your personal circumstances. With Ghaf Benefits, you have a range of funds to choose from, catering to a variety of investment objectives and individual risk profiles.
Ghaf Benefits, powered by Lunate, offers you unparalleled control over your end-of-service benefits (EoSB), enabling you to secure your financial future. It is therefore vital to be well-informed about the investment options available to you through the Ghaf Benefits plan to maximise the outcomes of your end-of-service benefits. Understanding your risk tolerance, current financial situation and long-term objectives is essential to making informed decisions and selecting the best investment options for you.
Ghaf Benefits has developed a comprehensive suite of MOHRE-approved and SCA-regulated investment options designed to transform traditional end-of-service gratuity into a wealth-creation tool. The Ghaf Benefits plan is tailored to meet diverse member preferences as part of the Alternate EoSB Scheme.
The risk-return spectrum: aligning funds with objectives
Investment success begins with understanding where you fit on the risk-return spectrum. To accomplish this, every member should answer three fundamental questions:
What is your investment horizon?
How much volatility can you comfortably withstand?
What are your ultimate financial objectives?
Based on these considerations, Ghaf Benefits has created an expanding suite of investment options, currently featuring six professionally managed funds across three investment strategies. This suite of funds is designed with a diversified mix of equity and fixed income investments to cater to various risk profiles and preferences, with both conventional and shariah-compliant options available.
The fundamental principle of investing applies across Ghaf Benefits’ suite of funds: pursuing higher returns requires you to accept potentially greater volatility. The funds are positioned along this risk-return spectrum – from Capital Protection funds that prioritise stability, to Global Conservative funds that introduce measured growth potential, to Global Balanced funds that embrace market fluctuations in pursuit of stronger long-term performance.
Capital Protection Funds: the conservative cornerstone
Capital Protection funds prioritise capital preservation over growth, delivering stable, predictable returns with minimal exposure to market fluctuations. The conventional fund invests exclusively in UAE bank deposits and short-term government bonds, while the shariah-compliant fund utilises wakala arrangements with local banks and government-backed sukuk instruments.
These funds maintain short maturity profiles to ensure high liquidity while minimising interest rate risk. Such conservative allocations have historically delivered modest but stable returns with minimal volatility, with performance closely tied to prevailing interest rate environments. While returns may be lower than growth-oriented alternatives, these funds provide the stability and predictability that risk-averse members value.
Global Conservative Funds: stability with growth potential
Global Conservative funds are designed to balance stability with growth opportunities through diversified investments in high-quality fixed-income securities. The conventional fund provides exposure to a globally diversified bond portfolio concentrated in developed markets, while the shariah-compliant fund invests primarily in investment-grade sukuk across emerging markets.
This conservative investment approach has typically delivered stronger returns than capital preservation strategies over extended periods while maintaining relatively lower volatility, offering a middle ground between pure capital preservation and growth-oriented investments.
Global Balanced Funds: building growth through diversification
Global Balanced funds employ a strategic allocation between equities and fixed income, designed for long-term growth within a structured risk framework. The conventional fund diversifies across global equity markets while maintaining a substantial fixed income cushion for stability. The shariah-compliant option achieves similar exposure through Islamic equities and sukuk instruments.
Balanced portfolios have historically delivered stronger long-term returns than exclusively fixed-income alternatives, though with notably higher short-term volatility. This approach accepts market fluctuations as an inherent part of pursuing greater returns, with temporary declines viewed as natural components of long-term wealth accumulation.
Portfolio customisation: your investment, your way
Ghaf Benefits offers a comprehensive suite of funds designed to suit a wide range of member profiles – from those prioritising capital preservation to those seeking long-term growth. The true advantage lies in the ability to thoughtfully combine these options, tailoring each portfolio to reflect individual goals and evolving needs.
Members can adjust their fund allocations to reflect changing priorities and circumstances. The ability to combine funds in various proportions means portfolios can evolve alongside personal situations – whether that involves increasing conservative allocations for greater stability or emphasising growth strategies when appropriate. This flexibility ensures investment approaches remain aligned with individual objectives throughout different life stages and market conditions.
To learn more about the range of investment options available to you with Ghaf Benefits, please contact our client services team at +800-0-444-5068 or email eosbenquiries@ghafbenefits.com.
Disclaimer
The Lunate End of Service Benefits Fund (“Lunate EoSB”), known as the Ghaf Benefits Plan, is managed by Lunate Capital LLC and its affiliates. The material provided is for informational and educational purposes only, not investment, legal, tax, accounting, or professional advice, nor an offer to buy or sell any securities or products. Recipients should seek independent professional advice before making decisions. Past performance or historical data are illustrative only and not indicative of future results, and forward-looking statements involve risks and uncertainties. Lunate does not guarantee the accuracy, completeness, or reliability of the material and disclaims liability for any losses, damages, or errors arising from its use. Redistribution is prohibited without prior written consent. While the Lunate EoSB is authorised by the UAE Securities and Commodities Authority (SCA), such authorisation does not represent endorsement or guarantee.
