How to become rich: Beware! Don't do this thing, you will lose your money - Top money-making TIPS for you

How to become rich: Festival of Diwali holds a special significance as it brings an opportunity for new beginnings. On this occasion, people clean their homes to remove impurities and also to welcome the arrival of Goddess Lakshmi. Similarly, investors too find this occasion very special for commencing new investments, and prior to that they also clean their portfolios, thereby, rectifying earlier investment mistakes, if any. To know what else should be done, Money Guru show on Zee Business lets you know in details about dos and don'ts of mutual fund investment. Here are the things that you must avoid doing to ensure wealth flows into your coffers in a strong manner:

1. Avoid congestion of funds

- You should have diversity in portfolio but not excess of it
- Do not keep too much funds in your portfolio as per advise of your agent
- Take expert help before preparing portfolio
- More funds in your portfolio does not mean much return
- Keeping more funds may yield lower returns

2. Avoid over diversification

- Diversifying the portfolio is beneficial
- Over diversification is not a good situation for investment
- It would be challenge to manage over diversified portfolio
- It is very difficult to monitor all the funds
- It is very important to have right asset allocation

3. Don't keep funds from the same fund house

- While investing, keep in mind that do not take all the funds from the same fund house
- Take funds from different fund houses while diversifying your portfolio
- Every fund house has its own investment strategy
- Take advantage of the strategy of different fund houses

4. Get out of bad funds

- Review if the scheme is not performing well
- If change in the fundamentals of the scheme
- The scheme failed to meet your criteria, seek a financial advisor's help
- Decide on the basis of an expert advice

5. Review your portfolio periodically

- Some people want to invest for a short period
- Choose schemes that give good returns in the short term
- While choosing the scheme, people generally don't look at all aspects of the fund
- They also do not calculate expense ratio, volatility and risk

6. Do not duplicate funds

- Often investors hold 15-20 funds in their portfolio
- They can include 4-5 funds of the same category
- As soon as the NFO arrives, they invest money without thinking
- First, you should understand your needs and then only add funds to your portfolio
- Duplication of funds can cause loss to investors

7. Handle financial records

- Investors do not give information about their investments
- They also hide investments from their family
- They also do not maintain their financial records
- Maintaining financial records is very important
- You must share your investment information with your wife

8. Update your information

- Make sure to correct change in your name, correct any mistake
- You must register your name change in bank etc.
- You should also enter all changes in your investment papers

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9. Take financial advisors help to achieve goal

- Get your portfolio reviewed from an investment advisor
- Financial advisor will help you in setting your goals
- You also get information about investment formalities
- You will also answers for all your dilemmas