BizAdvice: Looking for Investments..? Look before you Leap!

Some say the markets have bottomed out..
Some say there may be a 10 - 20% of downside from current levels.
Some say this is the best time to invest.
Some say wait for some more time.

Yesterday I was reading an article, where each and every crash has given an above average returns.

For instance if you take the Great Depression of 1929, the global stocks fell about 80% but rose to a level giving returns of about 600%.
Thats the beauty of investing when no one is there in markets.

Sell when All Buy - Buy when All Sell - This is the simple logic I've been following all these days.

Let me come to the point - If you are going to invest in any form of investments - Stocks, Mutual funds, ULIPS etc. follow the following STEPS.


1. If someone assuring you certain returns, ask then in writing - the written documents will give the true picture.

2. Read and understand those docs - it might be lengthy, in font size of small ants, discouraging you from reading. But read it! Afterall, its your hard earned money.

3. Verify the legitimacy of the investment

4. Find out what are all the costs associated with the investments - like Mgmt cost, transaction cost brokerage etc.

5. Assess the risk-return profile of the investment - The risk must be usually proportionate to the Returns.

6. Compare these details with other investment opportunities available, sometimes there might be another guy for the same investment profile with no or low cost of investment.

7. Ascertain if it is appropriate for your specific goals and examine if it fits in with other investments you are considering or you have already made.

8. Deal only through an authorised intermediary

If all these are satisfying you, then go for the investment.

Happy Investing!!