Review
Periodic review of finances involves checking bank account balances (whether average quarterly balance is being maintained), checking due dates for insurance premium, taking a closer look at the net asset values and current valuation of investments. A review of investments also involves comparing the investments vis a vis the investment goals to decide whether any action needs to be taken.
Rebalance
As a result of review of the financial situation, some changes may have to be made to the asset allocation by way of redemption from some investments and/or making fresh purchases into others. This also involves re-investment of matured deposits and analysing the adequacy of life and medical insurance cover.
Update
It is important to make sure that personal details like mobile numbers and residential/correspondence address are up to date. Updated KYC record is a must, to be able to operate the investments seamlessly.
Also read:
Make these money corrections for the new year
Consolidate
Over a period of time, one tends to open new folios with the same mutual fund or demat accounts with different brokers. It helps to identify the demat account in use and close the non-active demat accounts by transferring holdings to the demat account which is active. A folio consolidation form can be filled and all existing folios of a mutual fund can be consolidated into one single folio for ease of operation.
Point to note
It is recommended to take advice from an experienced financial adviser who can carry out the above processes diligently and efficiently.
(Content on this page is courtesy Centre for Investment Education and Learning (CIEL). Contributions by Girija Gadre, Arti Bhargava and Labdhi Mehta.)
