Does your family know about your investments?

livemint.com:

Financial investments are often planned around life goals — you could be investing to fund your children’s education, for retirement, or to meet other short-term goals like buying a home, etc. They are also made to secure your loved ones, in case something were to happen to you. But, very often primary caregivers end up not informing other family members about the investments they make. In our new video series ‘Money Shots’, Neil Borate, Deputy Editor at Mint explains why adding nominees to investments is key, and how to go about it.

It may be a good idea to list down all your investments in one place and let a close family member know about them. But be sure to update this file at regular intervals with any corrections that you may make to your portfolio. This will ensure the financial wellbeing of your family in the event of your demise.

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Read on to know what a nomination is, why it is important, and how you can add a nominee to your mutual fund investment in case you haven’t already done so.

Each time you fill out a form to sign up for an investment, you are prompted to add nominee details. Nomination is the process of appointing a person to take care of your assets in case something were to happen to you. The nominee can be anyone — your spouse, child, sibling, or any other person who you trust with your assets. Remember, the nominee that you choose is only a custodian of your money. They do not get to inherit your investments. Their role is to fairly distribute your wealth among your legal heirs — they are allowed a share of your assets only if they are legal heirs.

You can choose up to a maximum of three nominees for every mutual fund