Investment Guide

Have an 'Investment Objective'

Create for yourself an objective to perform wiser investments. This objective helps you choose between schemes that satisfy different objectives.

Read carefully

Read the offer document carefully before investing. Though it may be lengthy, you must at least read the sections on risk factors, litigations, promoters, company history, project, objects of the issue and key financial data.

Don't hesitate to approach professionals.

Although you may be tempted to make your own investments, it may be smarter to trust options that offer a professional management of investments, for example Mutual Funds.

Deal only with registered intermediaries.

You may need a broker to invest in many financial instruments. And a good broker might be the difference between a good, safe investment and a bad, money-losing investment. That’s why, it is important to deal with brokers who are registered with the regulatory authorities.

The SEBI approval

Always look out for those companies that have been approved by the SEBI. The regulations laid down by the SEBI make for wiser investments with an official corroboration.

Avoid volatile sectors.

There are times when a sector is performing amazingly well and times when the same sector might be in a downtrend. That's why it is best to not be influenced by such volatile investment areas. Go for safer and less risky options like investing in a Mutual Fund.

Picking the Right Mutual Fund

Mutual Funds are a great way to invest if you do not have the time or the expertise to invest in the stock market directly. Since there are several mutual funds and schemes in the market, it is important to select the right one for you.

Conduct your own research.

There are various schemes in the market which may seem lucrative or even promise guaranteed returns. But take professional help and ensure that you select a scheme that best meets your investment objective.

Beware of stock advice spread via the media.

Free advice is not always free. Many of the investors who offer free advice on specific stocks with promises of lofty returns have vested interests in suggesting so. Beware of such tips.

Beware of fixed/guaranteed returns schemes.

Treat any scheme that offers higher interest rates than a bank with suspicion. Do not be lured by false promises of unachievable profits on investments. Conduct your own research to choose a scheme that best suits your future needs.

Do not be fooled.

In today's world, it is very easy to get fooled by seemingly lucrative offers that invite investments. Be strong and do not be taken in by companies that up their CSR or even unethical promoters.

Redressal of Grievances

In case of any doubts or grievances it is best advised to approach the appropriate authorities or bodies. Seek corrective action and do not take things lying down.

Be honest.

Be honest to yourself as only then can you demand honesty. Be a part of investor forums and fight for your own rights.