Investment Blog

Does your family know where you have invested?

I met a client whose father passed away recently. He had no idea of where the investments were made by his father.

After a lot of trouble, he could access a few details from his father’s email inbox and WhatsApp messages. The investments were all over the place and he was not even sure if all the assets were accounted for.

Check out these mind-boggling numbers from India:

– Despite tech initiatives and public awareness campaigns, the unclaimed monies held by public and private sector banks alone have witnessed a 26% jump year on year to Rs 78,213 crore at the end of March 2024
– Insurance repository CAMSRep estimates the unclaimed insurance amount at Rs 20,000-22,000 crore, covering around 7 million policies
– As of March 2023, there were over Rs 35,000 crore in unclaimed mutual fund investments
– An estimated Rs 48,000 crore lies unclaimed with the EPFO.

Imagine, the agony of losing a family member and on top of it access to the finances. A family member who worked hard to save the assets in the hope of a better future for others. All the hard-earned money is just lost and becomes a figure in unclaimed amount.

Nobody intends his near & dear ones to bear avoidable sufferings when they are no more. Therefore, one must put things in place to avoid such situations.

What you must do:

– Do not spread your investments in multiple places. Keep it simple.
– Maintain a diary where you keep records of login credentials of your bank account, EPF account, investment platforms, etc.
– Note down your login credentials of the email account linked to your investments.
– Keep your insurance policies in one place.
– Maintain information on your real estate investments in digital and physical files.
– Details of your bank lockers and valuables inside it should be noted.
– Introduce your trusted wealth manager/investment advisor to your family who will guide in the transmission of assets.

Inform your family members, where and what to look for in case something unexpected happens.

It’s not about imagining your demise but being prepared for the worst-case scenario so that next to you doesn’t suffer more while grieving the loss of a family member.