For efficient functioning of any type, it is imperative that we create the necessary and suitable architecture for the purpose and organize ourselves for investing. We can compare the context to a house for living purposes with kitchen, bathrooms, dining, bedrooms etc along with appropriate fittings and furnishings, and offices for working purpose with conference room, office, filing cabinets etc. Similarly, we all need to create the enabling essentials for investment purposes which will help in smooth and seamless operations across instruments and domains.
Recommended Elements to Organize for Investing
The essential and recommended elements for such an architecture could be following: –
Min two Bank Accounts
It would be convenient to have a separate account for the purpose of investments. This will help in budgeting and convenience of cash flow management. Therefore ideally you must have minimum of two accounts; one for routine expenses and other for investments/scheduled payments. One can consider additional accounts for trading/online transactions etc.
PAN & Aadhar
Hopefully everyone today has a PAN Account and Aadhar Number. It makes sense to have these for spouse and children also. You can apply for PAN online also.
E-KYC
Now days one can do central e-KYC and use it online across all platforms in the financial market.
Demat & Trading Account
Even if you are not interested in active trading of stocks, it helps to have a Demat & Trading Account for varied purposes. One gets to buy/sell Exchange Traded Funds (ETFs) and Real Estate Investment Trusts (REITs) which are increasingly getting popular. And, it will also help you in getting updates from NSDL on your investments.
NPS Account
IT makes lot of sense to invest in NPS for purposes of tax efficiency and growth. Recommended that PRAN account is opened. Subscription could be as per individual objectives. Registration for NPS can also be done online at eNPS.
PPF Account
One should open a PPF account for self, spouse and children also. The subscriptions may vary as per financial objectives. One can carry on with minimum subscriptions for initial years if required and load up later.
Mobile Wallet
It is recommended that you have one or more mobile wallet services like G pay, Pay TM or your bank acct related wallet. Apart from ease of carrying cash and digital spending without exposing your bank account to online transaction hazards, it also offers avenues of investment like Mutual Funds and Digital Gold.
Register on NSDL
One should avail of the investor utilities provided by NSDL, esp the periodic statements of your all holdings across the spectrum and accounts associated with PAN. You will require a Demat Acct to do this. you can register for Consolidated Account Statement at NSDL-eCAS.
Use Software
One should identify some good online/offline accounting/money management software to keep track of cashflows and investments. My personal favourite is Microsoft Money. There are other options like GnuCash and Mint etc. One can also create virtual portfolios on sites like Moneycontrol.com to monitor the status of all investments at one place.
Make Nominations
Ensure that all accounts and investments have nominees.
Conclusion
While the initial effort may seem a tedious effort, one would find that most of it can be done online from comforts of home. Once you organize yourself for investing , you are ready for variety of important investment related actions/decisions with ease