New Delhi, July 25 -- When you invest in a mutual fund, buy insurance, or open a bank account, picking a nominee is one of the first things you are asked to do. But one situation that many investors don't think about until it happens is when the person they nominated passes away before them.

If your nominee dies before you, your investments do not automatically become invalid or get transferred to someone else. However, you must ensure that you appoint a new nominee to keep things simple for your legal heirs.

Whether it is your MF investments, demat account, bank deposits or insurance policy, the death of a nominee does not change its ownership. You continue to have rights over your assets, including buying, selling or redeeming them. ...