Ratan Tata’s Will Sheds Light on Fixed Deposit Investments, Where Do They Stand Against His Stock Portfolio?

Ratan Tata's Will: Late industrialist Ratan Tata was known for his philanthropic initiatives and left a massive chunk of his total wealth for charitable purposes in his will. The recent details from Ratan Tata's will have revealed that the business magnate had also invested a decent amount of money in fixed deposits as well.

Ratan Tata's estate is estimated to be worth around Rs 3,800 crore. Whereas, his total shares, including preferential shares of Tata Sons and other assets, will be donated to Ratan Tata Endowment Foundation, reported Economic Times. While Ratan Tata's will, which ensured that everyone gets something from his wealth (including his cook and pet), sheds light on his generosity, it also detailed about his interest in low-risk investment tools like fixed deposit.

Ratan Tata's FD Investment

According to an Economic Times report detailing Ratan Tata's will, his fixed deposit investments, along with funds in local bank accounts, amounted to Rs 367 crore. Additionally, there was a cash-in-hand of a little over Rs 4 lakh. He had owned nearly Rs 40 crore worth foreign assets which included land parcels in Seychelles and accounts with international banks.

Ratan Tata's Stock Market Investment

The former chairperson of the Tata Group, Ratan Tata, publicly held nine stocks with a net worth of Rs 997.4 crore, according to Trendlyne data as on June 30, 2017. According to the data available on the website, he had held shares of Indian Hotels Company worth Rs 913 crore. Additionally, he held shares of multiple Tata Group companies, including Tata Chemicals, Tata Investment Corporations, Tata Motors, Tata Power Company, Tata Steel, etc. There is no information, available on public domain, about Ratan Tata's investment in mutual funds and other equity investment instruments.

Ratan Tata Investment: FD vs Stock Market Investment, Which One Wins?

Based on the data available online, it is evident that Ratan Tata's FD investment was significantly lower than the money he had invested in the stock market portfolio.

Ratan Tata's Will: Who Gets What?

Ratan Tata's will, dated February 23, 2022, provided details about the distribution of of his assets, wealth, and other savings among his family members, closed relatives and other acquaintances. Ratan Tata donated nearly Rs 3,800-crore of his estate to the Ratan Tata Endowment Foundation and the Ratan Tata Endowment Trust. His will also mentioned the wealth distribution to his half-brother and other siblings, pet, long-term servants and other close friends.

As per Economic Times report, one-third of his financial investments will go to his half-sister his half-sisters Shireen Jejeebhoy and Deanna Jejeebhoy. The asset included his savings in bank accounts like fixed deposits, physical assets like watches and paintings, etc. One third of these assets will go to a former Tata Group employee who was close to the industrialist Mohini M Dutta.

A share of his Juhu property now belongs to his half-brother Jimmy Naval Tata. Ratan Tata's will is yet to be executed as its executors have filed a petition in the Bombay High Court for the probate of the final will, reported ET.
Probate is the legal process under which the court validates the authenticity of the deceased person's will and ensures the fair and proper distribution of their assets and beneficiaries.