As per RBI, a staggering Rs.42,272 crores (as of March 2023) are lying idle in unclaimed bank deposits, i.e., savings and current accounts that have been lying dormant for 10 years. Tracking down misplaced or forgotten investments was, till now, akin to searching for a needle in a haystack. But thanks to modern systems like the IEPF (Investor Education and Protection Fund) and the recently launched UDGAM (Unclaimed Deposits Gateway to access information), reclaiming these investments has become more streamlined.
How to claim investments from UDGAM?
- Visit the UDGAM portal: https://udgam.rbi.org.in/
unclaimed-deposits/#login and register yourself. - Enter the name of the account holder (along with his/her respective valid ID proof details) whose unclaimed deposits are to be tracked.
- As the details of the account holder get reflected on the platform, click export PDF. An unclaimed Deposit Reference number (UDRN) will be generated and it will also guide you on how to proceed with the claim process, depending upon the bank to which the account belongs.
While UDGAM helps reclaim the lost money from bank accounts, IEPF comes to the rescue in case of an investors’ unclaimed market-linked investments:
- Shares of Public Companies
- Unclaimed Dividends
- Matured Debentures
After 7 years of remaining unclaimed, the abandoned money gets transferred to IEPF.
How to claim your forgotten market-linked investments through IEPF?
- Visit: https://iepf.gov.in/
IEPFWebProject/ SearchInvestorAction.do? method=gotosearchinvestor - Click “Search Unclaimed/Unpaid amount” under the “Services” tab followed by “Search Unclaimed/Unpaid Amount” under the “For Investors” tab
- Input your family members’ details whose investments are to be tracked.
- Follow up with account creation at mca.gov.in and the IEPF -5 Application form
- Send the physical documents (as specified therein) to the nodal officer of the company whose shares you are claiming
- The company will initiate the claim verification process and do the necessary transfers to your demat/bank account on successful verification
Hope, the above was helpful. Do your bit by forwarding the above to more people so that it can be helpful to all.
(Contributed by Jatin Uppal, Deputy Manager, Hum Fauji Initiatives)
Common Excuses for Not Investing and How to Overcome Them
Investing is like the secret sauce that can spice up your financial future. The recent COVID crisis made all of us realize the importance of investing. However, many people, including retired and older individuals, still often shy away from it due to a range of common excuses.
“I’m too old or it’s too early to start investing “: Age is just a number when it comes to investing. Starting investments at an early stage is good and it’s never too late to begin your investment journey.
I don’t have enough money for investing”: You can start saving even with Rs 500 per month. But a large number of people have a preset notion of starting investing only when they have a particular amount or at a certain life stage like retirement. Such notions do nothing else than make one lose a lot of time when fruitful investment could have compounded into something big.
“I’m afraid of losing money”: Investing always carries some level of risk, but not investing is riskier! To mitigate the fear of losing money, diversify your investments across different asset classes, such as stocks, bonds, and safer FDs. This can help spread risk and make your portfolio more resilient to market fluctuations.
“I don’t understand where to invest”: The truth is you don’t need hours each day to manage your investments. You don’t have to be a financial expert as well. Start by educating yourself through beginner-friendly resources like books, and online courses, or seeking advice from a trusted financial advisor. Understanding the basics can boost your confidence.
“I’ll invest when I have more time” With the help of technology, opening investment accounts, selecting avenues, etc. are just one click away. You can automate your investments and let them grow passively. Set it and forget it, allowing your money to work for you.
Investing is a crucial step toward securing your financial future, and it’s never too late to start. By addressing common excuses like age, initial capital, fear of loss, lack of understanding, time constraints, and expenses, you can overcome the barriers to investing.
So, don’t delay; start investing today and build your pot of gold carefully.
(Contributed by Manish Kumar, Relationship Manager, Team Arjun, Hum Fauji Initiatives)
Why Active Mutual Funds Are Still the Best Bet for Investors?
Why Active Mutual Funds Are Still the Best Bet for Investors
Indian stock market is a wild place. It’s also one of the most rewarding, with some of the highest growth potentials in the world. But that growth comes with a price:
Volatility. Of course, most of people confuse Volatility with Risk – Risk is merely your reaction to volatility!
So, how can investors navigate this unpredictable market? One way is to invest in index funds. This means that you’re essentially investing in a basket of well-established companies in India and this basket is chosen by somebody else. They’re a good option for investors who are new to the market and don’t want to get their hands dirty.
What if you’re willing to take on a little more risk in exchange for the potential for higher returns?
That’s where active funds come in. Active funds are managed by professionals who try to pick stocks that can outperform the market. Active funds can be a good option for investors who want to take a more active approach to investing.
There are a few reasons why active funds tend to outperform index funds in India:
Less efficient market: The Indian market is relatively less efficient than developed markets, which means that there are more opportunities for active fund managers to find mispriced stocks.
Higher growth potential: The Indian economy is growing faster than most developed economies,
which provides more opportunities for companies to grow their earnings. This gives active fund managers more opportunities to identify potential winners especially away from well-discovered and analyzed large-cap stocks.
Greater stock-picking flexibility: Active fund managers have more flexibility in their stock-picking decisions than index fund managers. This means that they can choose to invest in stocks that they believe have the potential to outperform the market, even if those stocks are not part of the benchmark index.
However, it is important to note that not all active funds are able to beat the market. Therefore, investors should carefully select active funds before investing or taking guidance from professionals.
(Contributed by Aman Goyal, Financial Planner, Team Arjun, Hum Fauji Initiatives)
