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
Safety tips for online investment
If you are interested in online investment and trading, refer this tips for safety.
- Set limits for your online trading transactions. Limit can be set on amount ,per day transactions, per week transaction or per month transactions
- Try getting maximum information of the online broker before choosing one.
- Do online,background checks on a few,before deciding which one you want to work with
- Never trade online or never do any online investment securities at all on a public computer
- Be careful from Phishers and Scammers . If you ever receive any email from unknown email id asking for " Your account related information" then immediately delete that mail. If you want to unsure, call your broker and ask them if they send you any email.
- Always make sure that the website you are doing online trading has " locked padlock" icon in the browser window and there should always be " https " at the beginning of the URL.
- Always check on your online transaction regularly. Incase you notice anything wrong with your account, such as inaccuracies or transaction problem immediately contact you online broker.
Learn more about safe banking tips through interesting videos.
An application to enhance the security of your online account with OTP.
Read the RBI advisory against Phishing emails sent in its name.
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