In India, an estimated Rs 22,000 crores of investors money is lying with various entities including Mutual Funds, Bank Deposits, Provident Funds, Share Dividends and Insurance companies.
This has happened because a lot of people made investments and forgot to reclaim them over a period of time. There are two things that happen with this money:
- Over a period of time, this money is moved into a common dormant account or to the Investors Protection Fund
- The money usually does not earn additional interest (So over time and inflation, it tends to lose value)
While this is a problem for dormant investments, most of us don’t have a consolidated view our current investments either. Take a look at the questions below and see how many you can answer in the affirmative:
- Do you know how much money you have invested in various assets over the years ?
- Is all that data in a single place ?
- Do you know how those investments are performing and what are the returns on them ?
- Do you know the difference between absolute and annualized returns ?
Now, coming to the most important question of all: “Does your spouse or better half know about this information ?“
If you get hit by a bus tomorrow (God forbid but accidents happen accidentally and unannounced) will your family have to deal with the additional stress of piecing together your financials apart from dealing with the grief of your loss.
Infact, a lot of the unclaimed wealth above is on account of investments made by people who have died and their dependents are unaware of the money.
Having a Financial Advisory firm for managing your personal finances helps mitigate this risk.
At Finqa, as part of our Investment Advisory service, we provide you with a consolidated view of all your investments and assets, their growth trend, recommendations for rebalancing as required and additional aspects of Personal Finance.
It’s not a one off relationship but rather an ongoing partnership – Just as you might have a family doctor or lawyer, the relationship with Finqa is similar but related to managing and growing your wealth.