Invest in fundamentally strong companies

• Invest only in fundamentally strong companies, which will handle market fluctuation and perform well in the long run.
• Also invest in strong stocks that are also liquid stocks.
• Do not go for momentum or penny stocks.

Diversify your portfolio

• Diversify your portfolio to hedge against risk.
• Prioritize your financial commitments and allot funds according to that.
• Always plan for long term investments, which will fetch you better returns.
• Follow lifecycle investing.

Learn to sell

• Most investors buy and hold on.
• Set the profit target and sell.
• However, don’t be impatient on short-term market fluctuation.

Cheap shares are necessarily not worth buying

• There is famous saying that do not chase price, chase value.
• The price may be low because the face value has been split.

Greed will make you easy prey

• Do not invest emotionally, stay focused on your goal.
• Make decision on logical basis not emotionally.
• Be careful, many scamster are waiting.
• Don’t get carried away by advertisements.
• Also beware of the get-rich schemes being sold through SMS and emails.

Don’t get overwhelmed by sectoral frenzies

• The present sectoral frenzy is around FMCG.
• Remember, all companies in a sector are not good. Each sector will have some very good companies, some reasonably good companies and many bad companies.
• Be also wary about companies that change their names to reflect the current sectoral fancy.

Don’t blindly take decisions

Begin investing early, so you can retire early.

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