Thoughtful Thursday #09 Who Moved My Cheese?

In this series of Thoughtful Thursday , we have covered Importance of Insurance, Inflation, Financial planning,  Goal based planning, Difference between Savings and Investments. We hope that you all are enjoying our blogs and have subscribed to it.

When I meet some of my clients and they are skeptical about investing in new products  / financial markets, a glimpse of the book Who moved my Cheese? flashes in front of me.

The story is about four characters, 2 mice (Sniff and Scurry) and 2 little people (Hem and Haw) who look for Cheese every day. One day, they find that their regular stash of cheese is gone! The mice and little people respond very differently.

There are mainly 4 lessons one needs to take away from story. These lessons apply to our Investments too..

Take away 1 : Change happens

Just like we have moved from Landline to Smart phone, from hand written letters to e-mails and so on.. Our Investments also need to change. In the earlier days, investments in Gold, Silver, Fixed deposits, PPF etc. were considered as the best investments. Today, these assets do not make good investments. Let’s see the returns from 4 assets classes for the past 39 years.

Take away 2 : Anticipate change

Those who Anticipate change are likely more successful than others. Similarly, in our financial journey we should always be in the quest for knowing new things and anticipating changes. Those who invested in Equity in the earlier years have gained much more than others. Click here to see the value of Rs 100 invested in the Share market in 1979.

Current Value of Rs 100 invested in 1979 is 38690 (Aug 30, 2018).

Take away 3 : Monitor change

Be alert and keep sniffing your cheese to know when its getting old. Which in our financial journey means that we should keep checking the market and discussing with experts in the field about new products, opportunities, etc. and keep abreast with changes happening in the industry and economy. One should not fill it, shut it and forget it.

Take away 4 : Adapt to change quickly

If you are not one of those who could anticipate change, you could at least be the one to adapt quickly. Currently, the mutual fund penetration in India is only 11% whereas for developed countries its way higher.

As seen in the table above, India has a long way to go in mutual fund market and the earlier you enter the market, the better it is.

Currently in India there are only 2 crores Mutual Fund Investors out of the total population of 134 crores.

As Warren Buffet rightly said.. “What the wise do in the beginning, fools do in the end”

It’s Never too Late to Start..

CA Nitesh Buddhadev
CA Mitsu Buddhadev
Nimit Wealth Management

You may reach out to us at for any queries, suggestions or feedback.

Subscribe to the blog series by entering your email id. Add to your contact list to avoid our updates landing in your spams.

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #08 – The Ant or the Grasshopper..? Choice is yours..!

We all have heard the famous story of the Ant and Grasshopper in our childhood days. However, its got a new twist this time. Read along to find out..

The story goes as…

Once upon a time, a Grasshopper was hopping, chirping and singing to its heart’s content in a field in hot summer’s day. There was an Ant staying nearby the Grasshopper’s nest. They were good friends. It was springtime and the Grasshopper was having a lot of fun playing, singing, and dancing in the sun. But the Ant was hard working. It was collecting food grains and storing them in its house for the winter.
The Grasshopper did not understand why the Ant was doing so much hard work and keeping for winter. He asked, “Hey,’ Ant! Why don’t you come outside and play with me?” The Ant replied, “I cannot. I am storing food for the winter when there won’t be anything to eat!” The Grasshopper only laughed at the Ant and said, “Why are you worrying now? There is plenty of food!” and continued to play, while the Ant worked hard.
When winter came, the Grasshopper did not find a single grain of food to eat. It began to starve and feel very weak. The Grasshopper saw how the hardworking Ant had plenty of food to eat and realized its foolishness.
The Story could have further continued as…
The Ant saved some food for the short term (i.e. the approaching winter) and also out of the savings she planted some seeds and nurtured them into plants..
Fast forward 10 years…
The Ant and the Grasshopper were now both little older. They could no longer work as hard as they used to do earlier. The Ant looked out of the window and saw the many trees laden with fruits from where she could source food during her retirement days. While the Grashopper still wondered how he would manage his requirements. It saw how the Ant had plenty of food to eat from the trees sown earlier and realized its foolishness.

The Story in Today’s Personal Finance world is not any different..

We see more Grasshoppers and few Smart Ants. We live in the world which believes ‘Zindgi na milegi Dobara’. We believe that savings can wait, Retirement is too far to think and so on. While we may enjoy like the Grasshopper, we must not ignore the Smart Ant. We should not ignore the bitter truth that a time will come when we wont be able work so hard.
The difference between Saving and Investing is not understood by many. This is because we are not taught the concept of Investment from the very beginning. We are only taught about Saving.
In this updated story, the Ant not only ‘Saved’ i.e. it kept its capital in a safe place for the near future but also ‘Invested’ its savings (by planting the seeds and nurturing it) and let the capital (plants) grow.
So while we all ‘Save’ our Hard Earned Money.. Smart people ‘Invest’ their Hard Earned Money.

Savings vs Investment

Meaning Savings represents that part of the person’s income which is not used for consumption. Investment refers to the process of investing funds in financial/ capital assets, with a view to generate returns.
Purpose Savings are made to fulfill short term or urgent requirements. Investment is made to provide returns and help in capital formation.
Risk Low High
Inflation Adjusted Returns Less or Negative Comparatively Higher
Suitable Tenure Short Term (1 to 3 yrs) Long Term (3 yrs or more)
If we don’t Invest our Capital, Inflation will eat up some of it. To know more about how Inflation affects us read Inflation the Hidden Enemy.
Simply, Investments should at the minimum generate a return higher than the inflation.
The below Equation explains that in the beginning of our career we work for money and ‘Save’ for short term and ‘Invest’ for long term. Over time, as we grow older our Investment Income should increase and become equal to our occupational income so as we near our retirement our dependence on occupational income is done away with.


Simply put, if you are the believer of ‘Zindigi na Milegi Dobara’, your bank balance is like ‘Kal Ho Na Ho’ and if you don’t want be ‘Devdas’ its time to take a pause and Invest Like a ‘Bahubali’ and be a ‘Hero’ so that will help you in days of ‘Kabhi Khushi Kabhi Gam’ and if you require more help regarding the same ‘Main hoon na‘.. 🙂

CA Nitesh Buddhadev
CA Mitsu Buddhadev
Nimit Wealth Management

You may reach out to us at for any queries, suggestions or feedback.

Subscribe to the blog series by entering your email id below. Add to your contact list to avoid our updates landing in your spams.

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #07 – When you INVEST, you are buying a day that you don’t have to work..

“Today,  I woke up relaxed, had steaming-hot home made breakfast, read the newspaper and went through my day’s schedule. No rushing up, no boarding crowded trains, not running after auto rickshaws to drop me to office. My day was planned full of things I love doing. So as I headed up for my shower and I noticed my hair had turned grey..” And then MY ALARM RANG..

Was this A dream? Yes, A Dream to Retire, A Dream to work on things I love, A Dream to Not work for Money..

This Dream can be true. If we Plan for it. Yes, you can live your dream life, follow your passion, work at your start up, do social work, anything you dream of..

One of the most Important and Ignored Financial Goals is RETIREMENT. Retirement doesn’t only mean sitting at home doing nothing. It means, having enough money to do things you love and live your life comfortably. Some may want to Retire Early, while Some may want to Never Retire. But everyone wants Financial Freedom.

It is worry some that people do not give the deserving Importance to Retirement Planning.

Retirement Planning 

Wondering about Planning your Retirement. Follow these Five simple steps below :


Youth in their late twenties believe that its too early to think about Retirement.  But friends, its better to Start Early. Lets see in the example below, the Benefits of Starting Early. Assuming that the Target is Rs 1 crore and Rate of Return is 10%, the following are sums are required to be saved by individuals ageing 25, 30, 35, 40 and 45 years.

Don’t you think even an auto driver or office boy can afford to invest Rs 2,610 per month? But they Fail to Plan due to lack of Financial Literacy.



Generally, people don’t earmark investments for RETIREMENT Corpus. As a result they end up spending their RETIREMENT corpus whenever the need arises say, to pump in money for purchase of house, child’s higher education, etc. But please REMEMBER – you can get education loan, home loan, other personal loan but you will not get A SINGLE PENNY for RETIREMENT..!


Determination of Retirement Corpus is one of the most important steps which requires utmost care and attention.

(Taxation, Lifestyle Inflation, increase in Healthcare costs post retirement and other factors are ignored for sake of simplicity)


Some people are highly enthusiastic at the beginning but stop investing half way or withdraw the amount too soon. The Investment Journey is a roller coaster ride. Enjoy the ups and downs, do not panic in downfall and do not get excited in at a high point. Stay invested till you reach your Destination / Goal.

In the above example, invest consistently Rs 19,335 per month from Age 30 to Age 60 or invest lumpsum Rs 22,36,962 and stay invested.

(Assumed Pre Retirement return 10%, Post Retirement Return 6%, inflation 6%. Taxation, Lifestyle Inflation, increase in Healthcare costs post retirement and other factors are ignored for sake of simplicity)


Some people get duped by the Pension Plans provided by a few market players.

Don’t go for ready made plans, it will hardly beat inflation.

Customise your own Retirement Plan by planning the systematic withdrawals required each month and make sufficient investments in your earning years.

You may reach out to us for a customised Retirement Planning at

CA Nitesh Buddhadev

CA Mitsu Buddhadev

NIMIT Wealth Management

You may reach out to us at for any queries, suggestions or feedback.

Subscribe to the blog series by entering your email id below. Add to your contact list to avoid our updates landing in your spams.

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #06 – Are you KYG (Know Your Goal) Compliant..?

As you all are aware, without KYC you cannot start your investment. I wish it was equally mandatory to have KYG (Know Your Goals) !

As we believe,  “People Don’t plan to fail but They Fail to plan..”

Everyone has their own list of Goals such as vacations, child’s education, child’s marriage, a bigger house, a holiday home, a dream car, a peaceful retirement, etc. All of these Goals, have a financial implication. To accomplish these, we either take a loan or make an investment or a combination of both.

Generally, following are the Goals as per human life cycle.

Definition of SMART Goals

Lets make it more Simple. Ask yourself following 4 questions for SMART Goal setting.

We will see one example of setting a SMART Goal.

Say, Mr. Kapoor has a daughter aged 3 years. One of the Goals he is considering in the Financial Plan is Child’s Education.

Goal Details Post Graduation
Fund Required at Today’s Cost  Rs 15,00,000
Child’s Age will be 21 years
Goal Year 2036
(Education Inflation is considered @10% based on data available)
Future Value (Corpus Required in 2036)  Rs 83,50,000

YES! You read it right, Rs 15,00,000 Today will cost you approx Rs 83,50,000 in 2036.

So, if the Goals are not appropriately set we may have to use our Retirement Corpus or other investments for this Goal and I am sure no one will allow their child’s education to suffer because of lack of funds. But what we will compromise here as our Retirement Corpus will also impact us in Future. So take caution in setting Financial Goals.

The SMART Goal here in the example is : Mr. Kapoor requires Rs 83,50,000 in 2036 for his daughter’s  Post Graduation. Now, Mr. Kapoor has 3 choices to achieve this Goal:

Particulars % in CAGR*
7% 10% 12%
Monthly Investment Required                  19,400               13,900                  11,000
Invest Lumpsum             23,95,000             14,11,000               9,94,000

*Compunded Annual Growth Rate

This is one of the many Goals Mr. Kapoor will consider as a part of his Financial Plan.

Guys, Please Remember, its Personal Finance, always personalise it. Define your own Goals and get a customised Financial Plan for yourself. What may be applicable to one person may not be applicable to another.

We will help you to set your Financial Goals and Develop a customised Financial Plan for yourself. For more details contact us at

CA Nitesh Buddhadev

CA Mitsu Buddhadev

NIMIT Wealth Management

You may reach out to us at for any queries, suggestions or feedback.

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #05 – People Don’t plan to Fail but They Fail to plan..

Sometimes life’s best lessons are learned through stories, so let me start today’s blog by a small story..

A foreman, who was given the charge of a gang of extremely lazy labourers, asked them to dig ten feet holes near a large steel mill. The lazy workers were further agitated when they were told to dig the holes here and there. As time went by, they kept digging, and finally they dug up nine holes.


The labourers could not understand why they were being made to dig so many holes near the factory. They also grew desperate, tired, and extremely agitated. They decided to stop right there and not to work anymore. As they were about to retire, the foreman told them something which made them spring back to action forgetting all their agitation and tiredness.


The foreman told them that he was actually looking for a broken pipe which supplied water to the quarters where these workmen resided. The labourers sprang back to work at once.


What is the implication of this story?


To work without definite goal is not just uninspiring, but also difficult. On the other hand, when a man knows the purpose of what he is doing, he is able to focus better, be more sincere, creative and diligent in what he is doing.


Lets now, modify this story,

The Labourers – Our hard earned money,

Foreman – We, the investors 

We have investible surplus of Rs  10,00,000 and we decide to invest in 15-20 stocks / mutual fund schemes. We start investing and tracking the returns. Everyday, on our way to office we observe the price of stock / NAV of mutual fund schemes.

Mostly, many of us can’t stomach the short term volatility and become desperate, tired, and extremely agitated and so we decide to stop i.e. withdraw the investment and decide not to invest in Equity anymore or we start trying to time the market.


Whenever we feel like this, we must ask ourselves 2 simple questions:

1. What is the Purpose/Goal of this investment?

2. Where will I invest this money by withdrawing it?

We realise that this amount of Rs 10,00,000 we do not need now. We saved it for buying our dream car after 5 years.

Now, we look at the long term returns of the stocks/ mutual funds schemes and forgetting all the tiredness and agitation, we continue with the investment and do not track the schemes daily and are at peace as we need the money only after 5 years.

“Going half way and then thinking of the destination is not a good idea. Its always better to have clear idea about the destination before starting  the Journey.” 


To invest without definite goal is not just uninspiring, but also difficult. When one invests with a Goal in mind he is able to to focus better, be more sincere and regular in investing.

Always remember that,

” People Don’t plan to fail but They Fail to plan..”

In upcoming Thoughtful Thursday series, we will discuss more about how to set financial goals and relevant considerations for the same. Stay Tuned..

CA Nitesh Buddhadev

CA Mitsu Buddhadev

Nimit Wealth Management

You may reach out to us at for any queries, suggestions or feedback.

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #04 Inflation – The hidden enemy

Just the other day at lunch we all colleagues were discussing about our school / college days.. and one of my seniors said they had only doordarshan on tv while juniors discussed about nickelodean, hungama and so on.  Seniors were nostalgic about the Vada Pav they had in break time for Rs 5/- and juniors were boasting about burgers in Mc Donalds.

Just then it hit me that inflation as generally understood by people is the simple equation of change in the price of a commodity over the years viz.  Vada Pav costed Rs 5/- in 2005 and it costs Rs 15/- in 2018.


There is also concept of Lifestyle Inflation which most of us are unaware of. Simply, Lifestyle inflation means that the youth of yesterday were having Vada Pav for Rs 5/-, today we could get that for Rs 15/- but Today we do not want to have Vada Pav. We want to have Burger starting from Rs 50/-. This increase in cost due to jump from Vada Pav to Burger is termed as Lifestyle Inflation.

Here, simple inflation is only 8.82% (difference between Rs 5 and Rs 15 for 13 years) but for us inflation is way higher i.e. 19.38% (difference between Rs 5 and Rs 50 for 13 years).

Now, the concept to understand here is that when we plan our finances we have goals like Children Education, Children Marriage, Retirement, Foreign Holidays etc. Generally people recommend to consider inflation but tend to ignore Lifestyle Inflation. 

Statistics show that normally, Household expense doubles every 5 years due to CPI and Lifestyle Inflation. If you do not plan your finances well, you will have a huge gap in your income and expense.

Lets assume that you kept Rs 100 in your locker in 1990 and today you take that Rs 100 note and you want to spend it for your household needs. Do you know the purchasing power of that same Rs 100 note would only be Rs 15?


Now, Lets assume that your monthly household expense is Rs 25,000 and after understanding somewhat about savings and investments you keep Rs 25,000 in Fixed Deposit today in 2018 and you want to spend it for your household needs after 15 years in 2033. Do you know that you will have a huge gap of approx Rs 1,28,000 between your fund inflow and outflow (not considering Taxation).


So the thought to carry this week is that Planning your finances is very important.

And while planning the most crucial point to consider is Inflation.

Please share this article and help us spreading Financial Literacy.

We will be back with another interesting topic on Personal Finance and Investments next Thursday.

If you have missed earlier articles of this Thoughtful Thursday series then click here to read those articles.


CA Nitesh Buddhadev

CA Mitsu Buddhadev

NIMIT Wealth Management

You may reach out to us at for any queries, suggestions or feedback.

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #03 – Health is Wealth and You Must Protect it..

As Promised, Every Thursday we will write an article (Thoughtful Thursday) on Personal Finance & Investments and help India in achieving Financial Literacy to the maximum.

Recently, My Father in law was hospitalised and had a surgery. Strangely, all visitors asked “Do you hold a Health Insurance? Expenses are covered nah?”

Listening to this I had decided that my next article had to be on Health Insurance. So  in this ‘Thoughtful Thursday’ we are covering everything you want to know about health Insurance

Health Insurance

Health insurance is a type of insurance coverage that pays for medical and surgical expenses incurred by the insured. Health insurance can reimburse the insured for expenses incurred from illness or injury, or pay the care provider directly.

Need for Health Insurance

(Health Insurance Coverage in India:Stats from NSSO survey)

“Health is not valued till sickness comes”

Amidst the emotional turmoil and chaos, money flows like water. Firstly, the patient is suffering and secondly there is huge outflow of cash. At such times, one would want the patient be in a relaxed state of mind. However, this is not possible due to multiple stresses including emotional, physcial, financial, etc. One of the factor giving some relief to the patient is Health Insurance so that at least the financial burden is taken care of.

Actually the problem with Insurance is that you need it the most when you don’t have it..

Health Insurance or Mediclaim as it is referred to is available in various variants. Below is a quick summary of items to look at before buying a Health Insurance.

a) Amount of cover

Considering medical and hospitalisation costs I believe at the minimum Rs 20-25 lakhs of health insurance is required for a family of 2 adults and 2 children living in metro cities.

Myth – Some people believe that right now a Cover of Rs 5 lakhs is sufficient and later on we will increase it.

(In survey conducted by Nimit Wealth Management in our seminar, we found more than 50% have cover less than 5 lac and almost 35% people don’t have Health Insurance policy)

This is my personal experience, when my parents wanted to increase the Health Insurance cover the premium at their age was so high it was not financially feasible. Its my personal request and advise to each one reading this blog that keep a buffer at the beginning . If you believe Rs 5 – 10 lakhs is sufficient then you are overlooking the fact that inflation in medical industry is rising very fast.

Right now the additional premium of Rs 2,000 to 5,000 won’t matter but family will not suffer cash shortage at the time of Medical Emergencies.

b) Existing diseases

Myth – Some people believe that they are still young and medically fit and will not use the Health Insurance so they would purchase Health Insurance only when its required.

This is not true, we have heard of multiple events where young people were identified with some diseases out of the blue and what about accidents, it can cost you a bomb.

God forbid, if you are identified with some disease even as common as BP or Diabetes and then if you buy a Private Insurance those diseases will not be covered for the Gestation Period (generally, three years) and the Health Insurance Premium Amount will be higher.

We buy a protective case and cover for our Rs 20,000 mobile but we think twice before buying a Health Insurance for ourselves. Think Again..!

c) Employer provided Insurance

Myth – Some people believe that the Health Insurance provided by Employer is enough and they would not need any additional Health Insurance cover.

Well, that would be true ‘Only if’ you have decided that you are going to work for the same Employer for life!

Point to note is that (a) the amount of cover provided by Employers is generally not sufficient and (b) as discussed above, if you buy policy after diagnosis of any disease those diseases will not be covered for the Gestation Period (generally, three years) and the Health Insurance Premium Amount will be higher.

d) Other covenants

Check all the covenants and fine print. Especially the sub limits, room rent capping clause, maternity expenses coverage clause which may reduce your claim significantly. Go for policies which do not have such capping clauses.


Always Remember, buying a Health Insurance is like buying a Fire Extinguisher.

1. You wish that you will Never have to use it.
2. You don’t ask for a refund when it expires. You refill (renew) it.
3. If need be it will help you and your family in time of difficulty.

In this Literate India, Financial Literacy is very less..

Share this article and Thoughtful Thursday Series and help us in our mission to spread Financial Literacy in India.

P.S. – You can read other articles of this Series on

CA Nitesh Buddhadev

CA Mitsu Buddhadev

Nimit Wealth Management

For feedback or suggestions, you may reach out to us at

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #02 The Other Side of Nomination – You Must Know..

In the last blog we discussed about Insurance. But generating assets and buying Insurance won’t be sufficient to protect your loved ones. One of the most important part is here is “Estate Planning“.

Estate Planning

Your estate is the combination of everything you own — your home and other real estate, current and savings accounts, investments, life insurance, car, furniture, personal possessions and so on. Estate planning fulfills your wishes by making a detailed plan of the division of your estate in advance (who, what, when, how and how much), amongst the ones you want to give after your demise.

  • It protects your assets from going into the hands of unintended beneficiaries like your relatives
  • Protects families with young children who are not ready to take the ownership
  • Eliminates the family mess after your demise.

However, estate planning is much more than just physical assets and also includes:

  • Name of the guardian and inheritance manager for minor children
  • Instructions for your care if you become disabled before you die
  • Protection of the loved ones during unexpected and unfortunate events of their lives
  • Minimize taxes, court costs and unnecessary legal fees

Most Indian Families don’t believe in Estate Planning. A few people also have a myth that doing a nomination would suffice. However, that is not true.


A nominee acts like a Trustee. The Insurance company, Mutual fund or your Shares will be passed on to the Nominee, someone you trust, who can further help, in process of passing it to your legal heirs.

Otherwise, the legal heirs will have to go through the process of producing all kind of certificates like death certificate, proof of relation etc., The whole process is really cumbersome! So, to simplify, if a nominee exists, these hassles do not happen, since the company is bound to transfer all your money or assets to the nominee.

The company then goes out of scene & then, it is between nominee and legal heirs.

  • Generally, people have a notion that my spouse is a nominee and hence all assets will flow to him/her and I do not need to worry. Unfortunately, this is not true. As discussed above a Nominee is trustee. Though all assets will be transferred to your spouse, as per Hindu Succession Act – your siblings, parents, children can claim their share of assets from your pool of assets.
  • According to law, a nominee is a trustee, not the owner of the assets and will be legally bound to transfer it to the legal heirs.


Importance of Will

For most investments, a legal heir is entitled to the deceased’s assets.

A legal heir will be the one who is mentioned in the Will.

However, if a will is not made, then the legal heirs of the assets are decided according to the succession laws, where the structure is predefined on who gets how much. The succession laws are quite complicated and no one would want their families to go through lawyers and courts for the assets of their beloved deceased family members.

  • Nominee can also be one of the legal heirs. Nominee can be changed at anytime by informing the company concerned.
  • If the nominee is a minor, appoint adult as an appointee giving his full name, age, address and relationship to the nominee.
  • An investor has the option to register more than one nominee & specify the percentage of amount for each nominee. However, if the percentage is not specified, equal shares will go to each nominee.


General Rules of Nomination

  1. Nomination in Life Insurance

Nomination is a right conferred on the holder of a Policy of Life Assurance on his own life to appoint a person/s to receive policy moneys in the event of the policy becoming a claim by the assured’s death. The Nominee does not get any other benefit except to receive the policy moneys on the death of the Policy Holder.

Insurance (Amendment) Act 2015 has created a ‘beneficial nominee’ category which includes only close relatives of policyholders. Now if policyholder nominates his father, mother, spouse or children in an insurance policy, they become beneficial owners of claim proceeds.

2. Nomination in Employees Provident Fund (EPF)

In case of EPF also nominee is the person who will inherit the fund and not legal heir. As per rules, in EPF account one has to appoint his family member as nominee.

3. Nomination in Shares

Under the provisions of the Companies Act and the Depositories Act, Acts which govern the transfer of shares, the role of a nominee was different.

Reading of Section 109(A) of the Companies Act and 9.11 of the Depositories Act makes it abundantly clear that the intent of the nomination is to vest the property in the shares which includes the ownership rights there under in the nominee upon nomination validly made as per the procedure prescribed.

It means that if you have not written a will, anyone who has been nominated by you for your shares will be the ultimate owner of those stocks. The succession laws on inheritance will not be applicable but, in case, you have made a will, that will be the source of truth.

4. Nomination in Mutual Funds

Here nominee is a Trustee. While filling in the application form, there is a provision to fill in the nomination details.

You can also change nomination later by filling up a form which is available on the mutual fund company website.

Nomination in mutual funds is at folio level and all units in the folio will be transferred to the nominee(s).

If an investor makes a further investment in the same folio, the nomination is applicable to the new units also.

5. Nomination in Bank accounts and other investments

Section 45-ZA (2) (Banking Regulation Act) merely puts the nominee in the shoes of the depositor after his death and clothes him with the exclusive right to receive the money lying in the Account.


So next time, you get a mail from bank/ financial institution for updating Nominee.. Take Action.


CA Mitsu Buddhadev

CA Nitesh Buddhadev

Nimit Wealth Management

For feedback or suggestions, you may reach out to us at

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn

Thoughtful Thursday #01 – Your Life is Priceless, Really…?

When we say Our life is Priceless, Do we really mean it? But for our loved ones it is Truly Priceless..


A few days ago I was at a bank for some work and while I was waiting for my turn, a lady in her mid twenties came up to the bank personnel and asked if her late father had any life insurance policies. Since this lady was sitting adjacent to me, I naturally happened to hear the conversation between her and the bank person (say, Mr. B). Mr. B requested the lady to look up the documents in her house and find out if there were any insurance policies in the name of her father as the bank would not have that record. The lady helplessly told Mr. B she was not aware of where such documents would be and the bank help her..


While this conversation was going on.. A whirl wind of thoughts started in my mind.

We plan for everything in life but there is something which only the Almighty can plan. Can we ever be prepared for it..? NO, but we can follow 4 key steps to ensure our families are least stressed at such times :

  1. Evaluate if our Life Insurance is adequate to give the same lifestyle to our families which they are enjoying now.

More about Understanding your Life Insurance needs:

  • As a general rule, one required 10-12 times of his/her income as Life Insurance Cover. Please note the important word here is Income. Any non-earning member does not require Life Insurance. Non earning members would include housewife, student, retired persons.


When we first started our journey as financial planners, we noted that many Indians were lacking on the first step of financial planning i. e. INSURE. Before we plan our finances, we need INSURE events which are not in our control. Most of our clients would argue that they held traditional life insurance plans or ULIP.


The most important concept to understand here is that INSURANCE and INVESTMENTS should be separate.

The need arose for analysis of customised reports for giving the clients an understanding that neither the traditional life insurance provided sufficient LIFE COVER nor RETURN on investments. Hence LIAR 😉 (Life Insurance Analysis Report)

2. Keep all medical and life insurance papers in one file and each member of family should be aware about it.

3. Keep all asset documents in some cabinet and update the family members periodically about the same.

4. In this world of internet most of our insurance and other assets details are in our email accounts. Use Inactive account feature  (available in gmail) which will notify and give access to another pre-decided email id after a certain period of inactivity. This way our family can access important data from the email account.


For customised LIAR report,

Leave a message on our website


CA Nitesh Buddhadev

CA Mitsu Nitesh Buddhadev

NIMIT Wealth Management

For feedback or suggestions, you may reach out to us at

click to Share this article..
Share on Facebook
0Tweet about this on Twitter
Share on LinkedIn