We invest regularly but how many of us check the risk of investment and asses the investment for its risk and benefit. One must ensure following point before making an investment as we are putting our hard earned money.
Following are the top 10 investment safety tips
1. Always ask for written documents explaining the investment
2. Read and understand such documents, If you can not not understand anything or have doubt get clarified through authorized person. Do not Assume anything.
3. Always verify the legitimacy of the investment,. Ask questions about your money utilization. Is it legal or not etc.
4. Find out the costs and benefits associated with the investment. There could be some hidden charges. Try to digg in detail.
5. Assess the risk-return profile of the investment and your tolerance level, As High rick is High return.
6. Know and understand the liquidity and safety aspects of the investment
7. Compare these details with other investment opportunities available and find the best deal.
8. Always deal through an authorized intermediary
9. Seek all clarifications about the intermediary and the investment.
10. Explore the options available to you if something were to go wrong, and then, if satisfied, make the investment.
Above tips are very important and before making any investment decision one must ensure that he/she has made required efforts to check the legality, possible returns, expected benefits, Income Tax exemptions and its benefits, as one would be putting his/her hard earned money in the investment.