4. Invest on what you know: When it comes to investing Rakesh Jhunjhunwala follows only one strategy ‘Keep it simple’. He will only invest in companies whose business he can understand and would never opt for complex businesses. According to Jhunjhunwala if the investor has no knowledge of exactly what the company is doing very soon or lately he will lose interest in the stock, stop paying attention and lose confidence. So, the best way to invest is to buy stocks in a business that you understand. By doing this, you are aware of where the company is heading to and whether you should stay invested or bail out.

5. Invest again and again irrespective of conditions: Jhunjhuwala said that if it's done once, it could be a lottery but if it's done again and again, we call it consistency. This is what he is known for. Irrespective of the conditions he consistently invests in the stock market. According to him the quantum or strategy of investing can differ based on those conditions but he has never backtracked on his belief that stock market will always deliver if you do everything right.