Warren Buffet has rightly said, "The fact that people will be full of greed, fear or folly is predictable; the sequence is not predictable."
Many times, investors are driven by emotions emerging from their personality traits, which are difficult to cast aside completely.
Hence, a few safeguards:-
1. Trade through registered brokers only, as they are regulated, and give only specific power of attorney, with no cash transactions as they are risky and illegal.
2. Evaluate your financial adviser, portfolio manager and relationship manager for knowledge, experience and integrity.
3. Trust the statements, contract notes and bills, but verify them and point out discrepancies immediately.
4. Give clear and precise instructions to your broker.
5. Investigate any suspicious transactions not authorized by you.
6. Avoid dealings with companies having dubious management.
7. Don't get lured by advertisements and sales talk of assured returns.
8. Beware of advertisements trying to lure you with unrealistic returns.
9. Avoid dealing with multiple bankers and brokers to keep a proper check on your investments.
10. Trust only expert advice to avoid high risk investments.
Many times, investors are driven by emotions emerging from their personality traits, which are difficult to cast aside completely.
Hence, a few safeguards:-
1. Trade through registered brokers only, as they are regulated, and give only specific power of attorney, with no cash transactions as they are risky and illegal.
2. Evaluate your financial adviser, portfolio manager and relationship manager for knowledge, experience and integrity.
3. Trust the statements, contract notes and bills, but verify them and point out discrepancies immediately.
4. Give clear and precise instructions to your broker.
5. Investigate any suspicious transactions not authorized by you.
6. Avoid dealings with companies having dubious management.
7. Don't get lured by advertisements and sales talk of assured returns.
8. Beware of advertisements trying to lure you with unrealistic returns.
9. Avoid dealing with multiple bankers and brokers to keep a proper check on your investments.
10. Trust only expert advice to avoid high risk investments.