10 IMPORTANT DOCUMENTS

10 documents to secure before you die

Keep these essential papers in place and inform at least one family member so that your heirs don't have to run from pillar to post to inherit what is rightfully theirs.

1) Primary documents

These include your birth certificate, marriage certificate, PAN card, passport, election ID card and the Aadhaar card. Will be needed when transferring assets to your heirs.

2) Insurance details

The purpose of life insurance will be defeated if your family is in the dark. Make a list of all the policies, mentioning the name of insurers, policy numbers, insured sums and the tenures.

3) Pension documents

If you have an NPS account, mention the account number and nomination details. Give the pension account number with your employer.

4) Property papers

All property-related documents should be in one place. If the property is mortgaged, keep photocopies. Mention the loan account number and the latest outstanding amount. If property is insured, mention policy coverage.

5) Bank account details

Make a list of various bank accounts, giving the name of the bank, the account number, holding pattern and the nomination details.

6) Bank locker details

Mention the name of bank, locker number, ownership pattern and whereabouts of the key. Maintain an inventory of items kept in the locker and update every time you operate it.

7) Demat account details

Give the name of depository partner, demat account number and nomination details. If possible, update the details of the securities in the demat account.

8) Other investments

Give details of the PPF account and folio numbers of other post office investments. Make a list of mutual fund investments, mentioning folio numbers, ownership pattern and nomination details.

9) Loans and Receivables

If you have taken or given private loans to relatives or friends, mention the amount and the date by when these are payable/receivable.

10) Online 10 passwords

Though these are to be kept secret, keep a list for emergency reference. Mention the website, the online ID and the password.

Keep this in mind

This information is to be kept secret and accessed only if the main breadwinner of the family has either died or is in a medical emergency.

Make sure to update the information regularly. How often you do this depends on your convenience and the changes in investments.

The information listed above is very basic. you may want to add more details of other assets along the same lines.

You may want to make an online version of this information as well, but make sure it is on a secure site.

EVERYTHING ABOUT STP

1.      What is STP

STP is a version of SIP. It helps you to invest a fixed amount in a particular fund on a monthly basis. 

2.      STP Vs SIP

In an SIP, your money moves from your bank account to a mutual fund. In an STP, it moves from one fund to another. 

3.      How it works

Its simple. First step involves accumulating investments in a fund. When you want to exit this MF scheme, you sign up for an STP and specify a new fund and monthly amount. The STP will exit your previous investment and move your money to a new fund every month.  

4.      Liquid to Equity MF

The most common use of STP is to first invest your entire investment amount in a liquid fund in lump sum and then transfer it to an equity funds at different market prices, thus averaging your costs and lowering risks.  

5.      Equity to debt MF

Another common use of STP is when you want to lower the risks of your investment, say at the age of 55. You then systematically move the funds to debt scheme that can help you protect your money until your retirement. 

6.      Capital Gains

When you start an STP, you are essentially selling your investments in an old MF scheme and buying a new one. This means you could be eligible for capital gains tax either ofr the short term or long term. Consider this before making your decision.  

7.      Exit load

Before you start an STP, don’t forget to consider the exit load on your prior MF investment. This could eat into your returns.