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Write down Purpose of Investment, goals in Priority Order and yourmoney belief system. Write down the very purpose of your investment, time left and priority of your needs & Goals. And do not forget to write down your belief system on money and investment matters. This will clearly filter out aggressively marketed non suitable products.

Know your Risk Profile

Historical returns may look rosy. But it's not going to come in a straight line. As a human being, emotions play a vital role. Understanding your Risk Capacity (How much Risk you can afford to take), Risk Appetite (How Much Risk you are willing to take) and Risk Required (Amount of Risk Involved) in each investments are vital to make informed decisions. This can't be assessed simple 5 - 10 questions. Psychometric analysis brings out your Risk Profile.

When committing for long term investments think of your cash flow pattern and Need. This helps to avoid taking haste and impulsive decision. Make sure your investment time horizon should exceed the minimum period required for a positive desirable return in any chosen asset class. Test whether you are able to understand the product, risk, Cost (Cost of Entry, Recurring and Exit) and probable return. Know the liquidity conditions formalities and reinvestment risk. Regulated products and services are more transparent and accountable to the rules and regulation. You have fair chance of remedy against any fraud or malpractice Define your investment strategy and review process. Well defined strategy will eliminate confusion, short term noise and you know what you are up to. If you can satisfy above points and have domain expertise, time to keep you updated and right tools, you are fit to manage your own investment Or else better engage professionals to construct customized portfolio, execute and monitor. Compare an apple to an Apple. Bottom line (Final Value after expenses, Taxes etc.) only matters. Keep close attention to this point.Losing fortune is easy; just go by hot market Tips and FADs. Informed, timely decision is key for wealth creation and preservation.

Know your Risk Profile Diversify

Spread your risk - It's well said that you do not put all your eggs in one basket. Every asset class has its own plus and minus, risk and return style. Some give very low yet consistent return and other may give erratic with high return potential over mid-long term. Most of the asset classes are cyclical in nature. Predicting which asset class/sector will give best return in any given year is is really tough. There are many techniques to manage Assets and investment risk. These ranges from insurance to simple diversification to hedging of portfolio to periodic review, etc. These small actions can save your Assets and investment from deep trouble. So we should ideally formulate right Asset Mix considering our return expectation, Risk Profile, Time period.

Align investments to your goals

Aligning investments to goals may sound irrelevant. With Goals attached, your financial decision would be rational and sticky. You will have fair return expectation and risk involved. Beware: Almost all toxic products being sold to the gullible investors just provoking their thought on future need/goals.

Review your portfolio periodically

It's very crucial to review your portfolio on a regular periodicity. Helps to evaluate current holdings and take a call on non-performers and take a look at best performing asset and scheme. Helps to cut Helps to rebalance your portfolio Helps to change plan accommodating your current family status, financial situation, goals, future market outlook and change in tax. A review will also help take care of minor modifications such as changing beneficiaries which may look trivial but can have serious consequences if they're neglected.