KNOW YOUR WORTH BEFORE YOU BEGIN INVESTING - your age, variability of income, liabilities, dependants, past investments, industry you work in.

DON'T INVEST IN A PRODUCT YOU DON'T UNDERSTAND - but don't skew your portfolio in favour of one asset. Diversification helps reduce risk.

DO NOT INVEST AND FORGET - The investment mix depends on the goal and time available.

LOOK BEYOND PRICE AND PAST RETURNS FOR REAL VALUE

FACTOR IN INFLATION WHILE CALCULATING RETURNS.

BUY INSURANCE TO GUARD AGAINST THE UNFORESEEN. - but don't mix insurance with investment

DON'T LEAVE TAX PLANNING TILL END OF FINANCIAL

HOW ARE YOUR INVESTMENTS TAXED -

PF and VPS - this is the most common investment. The interest rates are decidedly the EPFO Trust.

PPF This assured return scheme is market linked, with a Rs. 1 lakh annual investment limit.

Insurance policies - Budget 2012 says that for tax benefits the cover should be 10 times the annual premium.

ELSS funds - Tax saver with the shortest lock-in period of three years may get scrapped under the DTC

UNIT LINKED PENSION PLANS - Upto 33%of pension corpus withdrawn on maturity is tax-free. Rest has to be put in annuity.

PENSION POLICIES - Annuity income is taxable as income at the normal rate applicable to the investor.

NPS - Launched with much fanfare, it has not done too well. May be overhauled and. Improved soon.

NSCs - There are now market linked like the PPF and available in five and ten year options.

TAX SAVING FDS - Best tax saving option for risk averse investors. Higher rates for senior citizens.

SENIOR CITIZENS SAVINGS SCHEME - A popular option that is now market linked and has an investment limit of Rs. 15 lakh per person.

STOCKS - If held for more than a year, no tax on capital gains. You pay 15%tax if sold before a year.

EQUITY FUNDS - Just like stocks there is no tax if held for more than a year. All dividends are tax free.

BALANCED FUNDS - Though up to 40% of portfolio can be in debt, these enjoy the same tax benefits as equity funds.

TAX FREE FUNDS - These bonds issued by infrastructure companies carry a low coupon rate.

NON EQUIT Y HYBRID FUNDS - After a year, the profit from sale is taxed at a lower rate of flat 10% or 20% after indexation .

DEBT FUNDS - Tax efficient way of investing in debt. After a year, profits are treated capital gains.

FMPs Similar to FDs but profits are taxed at a lower rate. Very popular among HNIs

RECURRING DEPOSITS - Lock into high rates even if you don't have a lump sum. No TDS so pay tax yourself.

POST OFICE MIS -- Monthly income is fully taxable without any TDS. Onus is on the investor to pay tax.

FIXED DEPOSITS - TDS only up to 10% if interest is more than Rs.10000 a year. Here too onus is on investor.

BONDS - Income from tax saving bonds is taxable. Pay tax if you fall in the higher bracket.

BE PREPARED FOR A FINANCIAL EMERGENCY - but do not keep all of it in cash.

GIVE PRECEDENCE TO RETIREMENT SAVINGS.

LEARN TO CUT YOUR LOSSES- Holding on to duds can be costly.