How to make your investing safer?
It is often felt that the terms “safe” and “investment” does not go hand in hand. But this is a complete misnomer and there are ways and means by which one can make his investments a lot safer than it is now.
- Portfolio: while investing your money, the first thing that must be given due importance is the portfolio. Try and compare the portfolios after choosing a few of them, according to your choice and requirements. Then choose the one that is the best in the lot and serves your needs in the most suitable manner.
- Risk: while investing, go through the offer documents or the Red herring prospectus thoroughly, before making a final decision. Ensure that the instrument comes with some tax benefits as it reduces the associated risk with the investment.
- Fund management: trust is the most important aspect in any investment. The credibility of the fund managers must be verified before you decide to invest. You need not worry if the manager has market goodwill. If there is any doubts in your mind, then better take your time and get more information.
- Investment time period: the time for which you are planning to invest is also important, especially in the present period of financial uncertainty. It is better to stick to short and middle term investment, rather than investing in long term plans.