Twelve points to consider before making any Investments

SignatureInvestments are made to make extra money to meet future investments. There are many ways to invest your money and Here are a few important points one should follow before making any investment:

  1. Obtain written documents explaining the investment
  2. Read and understand such documents
  3. Verify the legitimacy of the investment
  4. Find out the costs and benefits associated with the investment
  5. Assess the risk-return profile of the investment
  6. Know the liquidity and safety aspects of the investment
  7. Ascertain if it is appropriate for your specific goals
  8. Compare these details with other investment opportunities available
  9. Examine if it fits in with other investments you are considering or you have already made
  10. Deal only through an authorised intermediary
  11. Seek all clarifications about the intermediary and the investment
  12. Explore the options available to you if something were to go wrong, and then, if satisfied, make the investment.

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Author and Assistant Professor in Finance, Ardent fan of Arsenal FC. Always believe "The only good is knowledge and the only evil is ignorance - Socrates"
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