10 commandments for safe investing

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10 commandments for safe investing
Investing can be easy if you keep a few things in mind and have proper knowledge in the field. Whether it's real estate, equities, mutual funds or debt, one needs to adopt a patient and knowledgeable approach.

Here are a few pointers which might help you in that direction.

  1. Set clear and reasonable investment goals before you invest. 
  2. Don't forget that there are risks in any investment.
  3. Diversify your investment portfolio to decrease your overall risk. 
  4. Select the appropriate asset mix according to your risk capacity. 
  5. Recognize the limits of your knowledge. Avoid investments you don't understand. 
  6. Prepare yourself well. Be sure you know what you are investing in.
  7. Weigh the risk, potential returns, and marketability of your portfolio. 
  8. Keep in mind that income-tax is payable on your investment while making investment decisions. 
  9. Don't blindly follow the race. Think and act
  10. Understand your tolerance for risk, avoid taking risks you can't afford or aren't comfortable with.

Read more about: investment
Story first published: Monday, February 4, 2013, 11:32 [IST]
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