While making important decisions about investment of your money, you should take adequate precautions to ensure the funds are safe and earn desired returns for you. Here are few tips to keep in mind:
- Always deal with SEBI registered or authorized intermediaries only
- Try getting maximum information about the intermediaries and types of investment offered by them
- Before trading in any type of security try getting complete information and do a complete study of the security
- Always keep check and be careful if any stock shows sudden rise in the price or trading activities without any major change in company strategy
- Do not pay attention on rumors or advertisement that promises large returns
- Always ask for written documents giving the complete details of the investment. Read and clearly understand the document before investing and incase there is any doubt or if any point is confusing get it clarified. Avoid assumption as that could led to problem.
- Be alert on stocks promoted by internet websites,report research,tips etc. Always invest after doing adequate study of the company
- Always verify the legitimacy of the investment. Be aware about your money utilisation i.e. check whether your money is going to be invested for Legal purpose only.
- Be aware and alert on hidden charges and find out the cost and benefits associated with your investment. Try getting maximum details about your investment
- It is important to know and understand the liquidity and safety aspects of the investment
- Always compare other types of investment opportunities in market and find the best deal