What is a financial policy?

A financial policy, or financial savings, is a mid-range, liquid financial savings tool which is not managed by the bank and therefore does not include purchase and sale commissions, administration and custody fees and minimum commissions. The policy is a strong mix of investments in negotiable and non-negotiable assets, and uses all the innovations available in the capital market to maximize returns and profits. The policy has a double advantage: It creates security, peace of mind and financial stability into the future, along with the profitability and flexibility offered by an investment channel.

The flexibility enabled by a financial policy is suited to the dynamic nature of life: You can withdraw part or all of the money upon demand at any time, you can move and spread the money between various tracks to create an optimal combination of investment tracks without having to pay tax or a fee, and you can combine deposits, a standing order and cash.

The prominent advantages of a financial policy

A financial policy allows you to creatively and flexibly maneuver between diverse investment tracks precisely suited to your needs, desires, dreams and financial situation.

Your personal manager at Kali will not wait for something to happen – they will initiate investments for you based on the developments taking place in the market to create optimal opportunities. Our strategic team closely monitors your investments and will secure precious opportunities for you.


So what are the prominent advantages of having a financial policy with Kali?

Management Fees

The financial policy’s management fees are known in advance, unlike those of a portfolio and a trust fund that are dependent on the product’s risk levels. The financial policy’s management fees are unchangeable, as opposed, for example, to those of a trust fund, that can change.

The fact that we are a large and strong financial entity allows us to obtain much lower management fees for you than you would be able to obtain on your own.

Saving on Bank Commissions 

Financial policies have no purchase and sale commissions, and no management fees need to be paid to the bank. The bank, as a financial institution that has interests of its own, is less observant of your interests. The advantage posed by having a financial policy with Kali is that our only interest is toward you.

Kali is a privately-owned company and has no exclusivity agreements with and no dependence on any investment house, and therefore we can be 100% objective toward your own financial interests alone.

Tax Advantages

One of the financial policy’s key advantages is the tax deferral: There is no tax settling of accounts, which takes place only at the end of the savings period. You can thus move between the various tracks without having to pay tax.

Diverse Tracks

You can determine the primary share percentage, which defines the primary risk, just like you do when managing a personal portfolio. You can pick from among policies of up to 0%, 15%, 30% shares, and so forth. You can also determine the percentage to be redirected into investment in index-linked tracks, shekel tracks, foreign share tracks, index-tracking products in Israel and abroad and F/X, or you can pick one of the age-dependent tracks.

Alternative Investments

Yet another important advantage of financial policies is the ability to invest in alternative investments in the capital market. Alternative investments are less affected by the market’s volatility and therefore make the portfolio more stable. They open up investment options outside the capital market, thereby increasing the spread, and are appropriate for balancing a portfolio the bulk of which is in the capital market. Alternative investments may be highly suitable for investors averse to high risks.

How do you select your investment tracks in financial savings?

Our experts will create investment tracks for you according to your weighted risk level, in order to adjust the investment to your expectations and needs. Selecting the investment track – meaning, the percentage of dangerous assets actually held in the product – is the first component of the comparison process.

Generally, the investment tracks can be broken down into 5 types, by risk levels, from lowest to highest:

Non-share government track – over 90% of the holding is in government bonds

This track is suitable for people who want to invest the amounts for a short time of up to one year. It yields lower returns over time, but the risk is lower as well.

Defensive track – 5%-20% of the holding is in risk assets

This is a track for the risk-averse. The money is invested for a term of one to two years. This track is suitable for people who want to retain the money’s real value.

Balanced track – 20%-40% of the holding is in risk assets

This track can be suitable for everyone. It’s right for people who want medium return against medium risk. The money is invested for terms of at least two to five years. It should be emphasized that that you have to actually examine the assets, seeing as there is a difference between a share holding percentage of 20% compared to 40%.

Active track – 40%-60% of the holding is in risk assets

This track is suitable for people who want to increase their risk in a controlled manner and for those who want to invest the amounts for a mid-to-long range of 5-10 years; or for people who have considerable liquid capital and wish to increase the share portion of their provident funds at the expense of other liquid investments, in light of the exemption from capital gains tax applying to this channel.

Bold track – 60% and over of the holding is in shares

This track is suitable for investors willing to take a risk and invest for the very long term: over 10 years. A high percentage of shares is a risky investment, and in the long term the investment may occasionally suffer sharp upturns and downturns of the return; and therefore, this track is not the right choice for everyone. 


Having gained a full understanding of your financial and personal profile, Kali’s experts will recommend an optimal investment track suitable for you and adjusted to your needs and character, or recommend improvements to the financial policy you already have.


Costs and benefits for a securities purchase/sale fee will be upgraded according to the investment house’s arrangement.
Kali Group – Insurance and Investment Marketing Agency Ltd. holds an investment marketing license as provided in the Regulation of Engagement in Investment Consulting, Investment Marketing and Portfolio Management Law, 5755-1995 (hereinafter and respectively: “Investment Marketing” and the “Consulting Law”), and does not have an investment consulting license. It is affiliated with the manufacturers of the financial products and services marketed by it as part of the provision of the services to the client. For a list of the manufacturers, click here.
The above information may not be treated as a substitute for investment marketing adjusted to meet the client’s needs. Use of the information and data is at the user’s sole risk.

Articles on Financial Planning