"Nomination - Small but most important aspect at the time Investment "

Every time while doing documentation related to above for example  

1 Opening a simple saving account,  

2 Fixed deposit,

3 Any type of insurance, 

4 Provident fund, PPF , 

5 Any stock market related investment 

 Or many more.. We often seen and write Nominee section 

It is observed that while filing nomination section people take it on lighter note, they often left this section blank it shouldn't be good practice , here's why ....

Simple meaning of nomination 

Nomination is simple service by which you nominate an individual which is among from your blood relation , who can get benefit or right to receive any financial benefits after you ( if any unexpected incidence occurred)  

 Who can be nominee?

Nominee is a person to whom you gave right to receive benefit or get any proceeds of your investment, In case of your unexpected death or any unexpected incidence The nominee can be anyone generally people deem to be nominate their first relative - example your parents, spouse, kids, siblings etc. But is is not necessary that it has to be your relatives 

One can nominate anyone. 

Some investments also allow you to have multiple nominees.

Ex - for PF you can nominates multiple nominee where it share Benefit in percentage to each one to whom you nominate 

Why nomination is critical task?

As per survey of some recent years it is observed that only due to not nominating some one from family many family struggle to get composition or claim which might create a lot of unwanted hassle for their nearest ones

According to RBI there are thousands of crore which is kept in different banks with them only because original owner has not claimed the money, and original owner had not filed nomination details

This is simple example for showing how difficult it can be to receive or claim money for your family if you had not fill nomination detail 

By Saurabh kulkarni  (finance professional )