What an investor should do

#1
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1. Get rid of the junk
-Any shares you bought but no longer want to keep? If they are showing a profit, you could consider selling them. Even if they are not going to give you a substantial profit,*it is time to dump them and utilize the money elsewhere*if you no longer*believe in them.
-Similarly with a dud fund; sell the units and deploy the money in a more fruitful investment.

2. Diversify
-Don't just buy stocks in one sector. Make sure you are invested in stocks of various sectors.
-Also, when you look at your total equity investments, don't just look at stocks. Look at*equity funds as well.
-To balance your equity investments, put a portion of your investments in fixed income instruments like the Public Provident Fund, post office deposits, bonds and National Savings Certificates.

3. Believe in your investment
-Don't invest in shares based on a tip, no matter who gives it to you.
-Trade cautiously.*Invest in stocks you truly believe in. Look at the fundamentals. Analyze the company and ask yourself if you want to be part of it.
-Are you happy with the way a particular fund manager manages his fund and the objective of the fund? If yes,*consider investing in it.

4. Stick to your strategy
-If you decided*you only want 60% of all your investments in equity,*don't over-exceed that limit*because the stock market has been delivering great returns.
-Stick to your allocation.

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