Basic DO’s and DON’Ts of investing that you should follow

Investment is a way of investing money to earn more profit. Basically, it is the initial step towards the potential security of your funds. Investment is an important thing from several points of views because it is one of the best ways to get high ROI. There are different factors that affect your investment and its revenue. There are numerous ways of the savings by which you can save your future. In addition, there are many things those investors should remember means what to do and what don’t do.

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DO’s of investing that you should follow

  • It is important for investors to check the company’s credentials, management, fundamentals, the latest announcements and different other disclosure before placing an order by the market intermediaries. It is one of the investing rules. In addition, there are many sources of information like exchanges websites & companies, data vendor databases, business magazines and many more to gather information about the interested company.
  • Investors need to give clear and definite directives to the broker, agent and the depository participant.
  • Investors always should deal with the market mediators that are registered with SEBI and the stock exchanges.
  • You must give special attention to information related with the mediator before register as a client with any mediator. Need to read the contents carefully that stated in the risk disclosure document and is the necessity for investor registration process to deal with the brokers.
  • Investors always keep copies of papers and other important documents that they want to send to companies, trading member, registrar and other.
  • You should follow up carefully and rapidly when you do not get the necessary documentation in given time, get in touch with the concerned person like trading member, company etc.
  • Investors have to implement trading & investment plan according to their risk bearing ability because all investments have some risk that differs according to the investment plan used.

DON’Ts of investing that you should follow

  • It is necessary for investors to don’t execute any document through any mediator without understanding the terms & conditions.
  • Investors don’t get mislead through companies showing approvals & registrations from the government organization as the approvals could be for other purposes and not for securities you are buying.
  • Investors should not believe on the financial performance of the companies publish or featured in newspapers or electronic media.
  • It is vital to don’t blindly follow media information on company progress because some of these could be fake or misleading.

Must Read: Is it profitable to invest in shares?

  • You should not get misled by guarantees of refund of your investments by post-dated cheques.
  • Investors should not deal with unregistered brokers, sub-brokers and other unregistered mediators for the investment.
  • You should not forget the risk that involves the investment.

These are very useful points that investors should remember when they invest. Investment can be started from everywhere with a new plan or with a developed plan to achieve set goals for more profit. The most beneficial way is to have a carefully developed plan. It begins with setting economic goals and then increasing and following an asset program that is reliable with those objectives.

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