Think before you invest

Check if the company you are investing in is registered with the Securities and Exchange Board of India (SEBI), Reserve Bank of India (RBI) or Insurance and Regulatory Development Authority of India. Check if your advisor is registered with Securities and Exchange Board of India (SEBI), Association of Mutual Funds in India (AMFI) or Insurance and Regulatory Development Authority of India (IRDA). There are various investment options like banks, post office, mutual funds, shares, gold, real estate etc. Do not put all your savings in one investment option only. Diversify your investments in such a way that you get maximum returns with minimum risk.

Do not take unnecessary risks. Check your risk appetite before taking any risks. There is a misconception that banks are absolutely safe as they are nationalized banks. This is a myth as bank deposits are guaranteed only upto Rs 2,00,000 per investor. 

There is another misconception that insurance is an investment plan. Do not invest in insurance as an investment plan as that is not its objective and the returns are pathetic. Buy only pure insurance plans like term, health, travel, critical illness or personal accident. Use other investment options for investment.

Invest in mutual funds. It is one of the best investment options available in the market giving attractive returns. They are regulated by Securities and Exchange Board of India. They are transparent and professionally managed and they have easy liquidity. They have various schemes available as per your risk appetite. They do not invest all the funds in a single company. Hence there is diversification of risk also in high risk schemes making it very safe in case of default.

Finally remember that it is your hard earned money which you are investing and the Government cannot do anything to give it back to you if you are cheated other than to punish the guilty. Hence think before you invest.