Father’s Day is on June 15 this year. And while a new wallet or a shirt is a fine gift, the most lasting thing a father can give his family is financial security. Not just money in a bank account, but a proper plan.
This post is for two kinds of readers. If you are a father, it is a reminder of the financial tasks that protect your family long after you are gone. If you are gifting this article to your father or family member, it is a practical checklist of the things worth doing together.
None of this requires a large sum of money. Most of it requires an hour of your time and some paperwork.
Key Takeaways
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Gift 1: Update Every Nominee
If there is only one financial task a family does together this Father’s Day, it should be this.
A nominee is the person who receives your assets when you pass away. Missing or outdated nominees mean your family must go through months of legal processes to claim money that is rightfully theirs. Courts, lawyers, and delays at the worst possible time.
Where to update nominees
- All mutual fund folios (via AMC website or AMFI-registered distributor)
- Demat account and stock holdings (with the depository participant)
- Life insurance policies (with the insurance company)
- EPF account (via EPFO member portal)
- NPS account (via your NPS Central Recordkeeping Agency)
- All bank accounts (savings, FD, recurring deposits)
This takes about 30 to 60 minutes per platform, most of which can be done online. It may be the most valuable hour your family spends together this year.
Gift 2: Start a SIP in Your Child’s Name
A child’s education is one of the largest expenses an Indian family faces. School fees, college, professional courses. Starting a SIP early makes this goal manageable.
An example: A monthly SIP of Rs. 5,000 started when a child is 5 years old, invested in a diversified equity fund over 13 years until the child is 18, has the potential to grow to a meaningful corpus depending on market returns. The exact outcome is market-linked and cannot be guaranteed, but the principle of early compounding is well-established.
A SIP does not need to be large. What matters is starting early and continuing consistently. Even Rs. 1,000 per month started at age 3 runs for 15 years before college.
| Fortune Wealth helps families in Mumbai set up SIPs for child education and other long-term milestones through its AMFI-registered platform. |
| Mutual fund investments are subject to market risks. Please read all scheme-related documents carefully before investing. SIP does not guarantee profit or protect against loss in declining markets. |
Gift 3: Take Out or Review Term Insurance
Term insurance is the simplest and most cost-effective type of life insurance. You pay a fixed annual premium. If you pass away during the policy period, the insurance company pays a lump sum to your nominee. If you survive the policy period, nothing is paid back. That is the trade. And it is a very sensible trade for any earning member of a family.
A term policy with a cover of Rs. 1 crore can cost as little as Rs. 10,000 to Rs. 20,000 per year for a healthy 30 to 35 year old, depending on the insurer, the policy term, and the exclusions. The premium is significantly lower when bought at a younger age.
What to review if you already have term insurance
- Is the cover amount enough? A thumb rule is 10 to 12 times your annual income.
- Is the nominee updated? A policy bought before marriage may still list a parent as nominee.
- Is the policy term long enough? It should last at least until your youngest child is financially independent.
- Are all premiums being paid on time? A lapsed policy has no value.
Gift 4: Write a Will
Most Indians do not have a will. This is true even among financially aware families. A will is a legal document that specifies how your assets should be distributed after your death. Without one, the distribution follows succession laws that may not reflect your wishes, and the process is significantly more complicated for your family.
A simple will does not require a lawyer, though it is better to use one for larger or complex estates. At minimum, it should name an executor, list all significant assets, and specify who gets what. In India, a will made by an adult of sound mind is legally valid when signed in the presence of two witnesses.
This is not a morbid task. It is a practical one. Writing a will is one of the clearest acts of care a parent can perform for their family.
Gift 5: Have the Money Conversation
Many Indian families do not talk openly about money. Where the investments are. How much insurance exists. Where important documents are kept. Who to call in case of an emergency.
This Father’s Day, set aside one hour as a family. Go through the following together:
- Where is the will kept? Who is the executor?
- What are all the active insurance policies? Where are the documents?
- What investments does the family hold? Which platforms and AMCs?
- Which bank accounts are active? What are the nominee details?
- Where is the emergency fund? How is it accessed?
- Who is the contact person at the family’s investment distributor or firm?
None of this is comfortable to discuss. All of it is essential. A family that has had this conversation is far better prepared for any eventuality than one that has not.
| Fortune Wealth works with families across Mumbai, Thane, and Navi Mumbai on long-term financial planning, nomination management, and investment structuring.
Explore mutual fund and SIP options |
Frequently Asked Questions
What is the best financial gift for a father in India?
The most practical financial gift is one that protects or builds the family’s security. Topping up or reviewing a term insurance policy, starting a SIP for a grandchild’s education, or helping update nominee details across all accounts are examples of gifts that have lasting value. These are more meaningful than any physical gift because they address real financial gaps that most families have not thought about.
How do I start a SIP for my child’s education in India?
To start a SIP for a child’s education, you can invest in the child’s name through a minor account with the parent as guardian, or you can set up a separate SIP in your own name labelled for that goal. The fund choice depends on the timeline. If the child is under 8 and you have more than 10 years, a diversified equity fund is appropriate. If the child is older and you have fewer than 5 years, a more conservative allocation is suitable. An AMFI-registered mutual fund distributor can help you set this up.
Does a nominee automatically get all the assets after death?
In most cases for financial assets, yes. The nominee receives the money or assets directly. However, a nominee is technically a trustee in some legal interpretations, meaning legal heirs may still have a claim if there is no will or if the will contradicts the nomination. For this reason, having both a nominee and a will that are consistent with each other is the most complete protection for your family. A legal professional can explain the specific rules for different asset types.
Is term insurance the same as life insurance in India?
Term insurance is one type of life insurance. It provides a pure death benefit with no maturity value if you survive the policy term. Other types of life insurance include endowment plans, money-back policies, and Unit Linked Insurance Plans (ULIPs), which combine insurance with investment. Term insurance is generally the most cost-effective option for income replacement because the entire premium goes toward the death benefit, not toward savings or investment features.
What happens if I die without a will in India?
If you die without a will (intestate) in India, your assets are distributed according to the personal law applicable to you based on your religion. For Hindus, the Hindu Succession Act applies. For Muslims, personal law governs. For Christians, the Indian Succession Act applies. These laws may not reflect your wishes and the process of claiming assets can be significantly more time-consuming and expensive for your family compared to a situation where a clear will exists.
| Give Your Family the Gift of Financial Security
Fortune Wealth is a SEBI-registered investment firm and AMFI-registered mutual fund distributor in Mumbai with over 25 years of experience. Reach out at fortunewealth.in. |
