SEBI registered Investment advisor (RIA) with Registration number – INA 000000342.
Financial Checklist for the New Year

Beginning of a new year is the time for many new resolutions in life. Last year I have written about New Year resolutions on personal finance. While most of them are true even now, I thought of writing about some other points, which will make your financial life in order in the coming years.

1.   Mutual Funds

(a)  If you have done your Know Your Customer (KYC) registration before 1st January. 2012, you have to do it again! This is because of a recent SEBI guideline which requires some extra information. You can download the required form

          You can do it with any fund house or with the CAMS/Karvy offices nearer to you.

         You have to submit details like Father’s/Spouse name, Marital status, annual

income, latest net worth etc.

(b) Consolidate your mutual fund folios into limited number for easy monitoring. Apply for online facility so that you can transact online. Once, the direct plan option is available, opt for that as recommended by your financial planner/independent advisor.

(c)  Ensure that there is a nomination in each mutual fund folios to ensure trouble free transfer of the amount to your nominee.

 2.   Bank Account and Loans

(a)  Ensure that you are using the CTS -2010 cheque leaves in future. Though the deadline is now extended to 31st March. 2013, it is better to change your cheque books at the earliest. This will ensure faster clearance of cheques in future.

(b) Close the inactive accounts, which are no longer in use. You have to keep the minimum amount in all such accounts, to avoid penalty. It is better to have one or two accounts for better monitoring. Ensure that nomination is in place in all your accounts. Activate net banking facility to do online transactions. Register your email address with the bank for prompt delivery of statements. Activate SMS alert on your mobile number for each transactions. This will help you in identifying any unauthorized transactions in your account.

(c)  If you have cleared the car loan, get the no-objection certificate from the bank and arrange to remove the hypothecation by visiting the transport authority office.

(d) It is in your interest that you check your credit score to see your credit worthiness. This will help you, when you are applying for home loan etc. Now, you can get it from any credit rating agencies. CIBI Report is the most popular one in India.

(e)  If you are still paying home loan EMI and the rate of interest is more than 10.5%, think of transferring the loan to another bank, which offers better rates. But before that discuss with the existing bank and try to get the lower rate benefit, by paying the switching charges of around 0.5%. If the loan amount is high, shifting to a new bank will be better. But do a cost benefit analysis, before switching.

 3.   Insurance

(a)  If you are not getting good service from your health insurance company, you can use the portability option to change to another insurance company of your choice without losing the benefits of pre-existing diseases. But before changing, ensure that the new company policy offers life time renewal and will not load the premium based on claims. Go for policies without any sublimits.

(b)  Ensure that you have a term insurance policy of adequate value, which can take care of your family expenses in your absence. Online Term plans are better option to cover your life in a cost effective way. Don’t hide any health related issues while taking the policy to avoid confusion later.

 4.   Provident Fund

(a)  If you have not changed your PF account to your new employer, you may not get interest on the accumulation! If your account is inactive for 3 consecutive years. So, please transfer the old PF accumulation to the new employer, by submitting the relevant forms to the new employer.

These small steps will add lot of value to personal finance and you will save lot of time in monitoring them.

Finvin wishes all the readers a Fantastic Year 2013. Let’s make Wealth.



1 Comment

  • Deepak Ghugardare Posted January 8, 2013 8:46 am

    Happay new year 2013!

    Thanks you very much sir for your valuable guidance..

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