TEN BEST INVESTING PRACTICES
1. Prefer debit cards for rationalizing your expenses and clear credit card dues promptly.
2. Avoid credit card loans and other personal loans as they come at very high interest rates.
3. Keep home loan monthly installments less than 50% of one’s take-home salary.
4. Buy term life insurance for a better mix of lower premium and higher insurance coverage.
5. Avoid traditional endowment, money-back and unit-linked life insurance plans which mix insurance and investment inefficiently.
6. Buy health insurance when young, for meeting high medical costs, as premiums are lower.
7. Start investing early in life, across asset classes (equity, debt, gold) through mutual funds.
8. Invest in tax-saving equity mutual funds throughout the year, for efficient tax planning.
9. Use systematic investment plans (SIPs) of mutual funds for long-term wealth creation.
10. Avoid derivatives stock trading as higher returns are associated with much higher risks.