How to invest while keeping your family safe; 6 ways to build wealth

There are approximately > 80k crore of assets lying unclaimed in the form of dividends, shares etc. which do not reach the true beneficiary and hence, ensuring that our investments reach our loved ones in times of need is of utmost importance.

Here is a list of a few important pieces of advice about some points to keep in mind while investing so that our money is accessible instantly to our dependents in case of any unforeseen event

1) Ensure all nominations are in place:

This means if something unfortunate were to occur, your nominees/family/dependents would have access to your investments without delay. If you invest in Mutual Funds and/or stocks, you might be receiving an NSDL/CDSL Ecas statement monthly which has all your nominations across mutual funds and stocks in one place. For banks and other

2) Review your Insurance Policies and Beneficiary Nominations to make sure they reflect your wishes & current lifestyle needs.

3) Avoid tail holdings:

Too many investments and overly spread out have several challenges and should be avoided like:

a) In case of any unforeseen event, the family has a lot of paperwork and consolidation to deal with

b) Tracking the portfolio becomes difficult

c) Chances of ignoring a bad fund/scheme becomes higher.

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4) Invest into Quality Company stocks:

This helps the portfolio be steady and also easier for your dependents to inherit and understand in case they are forced to decide to hold / sell.

Some of these companies could be good dividend-paying ones, which helps create extra sources of income.

5) Creating a Will:

Having a will, though not necessary, is very helpful. Especially in cases of immovable assets like property or land, in case of a will, a probate is needed, and if a person passes away without it, a succession certificate would be required.

Hence creating one would be advisable in all cases, especially with this being a complicated process and bureaucratic process. The expenses involved in the transfer can be quite high.

6) Have an emergency fund in a bank a/c or liquid fund which is liquid and immediately accessible:

This is something that helps when you are and even when you are not around for dependents to access liquid money for immediate expenses so that they can get the other investments accessed at ease and with proper planning and assessment.

(The author is Founding Team @GoalTeller)

(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)