8. Track Your Portfolio Regularly

Don't fall into the complacency trap. By observing trends and changes in the market, you can know when it's time to get out. Also study if the portfolio you have created is really serving your goals and adjust accordingly.

9. If You Don't Understand Fully, Don't Get Involved

Sometimes, financial products are marketed with high flying and complicated jargon to mesmerize the investor. Spend time analyzing the various parameters by yourself. If the details are sketchy or not fully disclosed, don't bother. Besides, the opportunities for learning from mistakes are lost when you don't know what you did right or wrong. Actively seek to understand the implications of many terms in financial products.

10. Keep the Tax Angle in Mind

Beyond a point, investments may not help you with saving taxes anymore.  Public and Employee Provident Funds are tax exempt to a limit and offers interest compounded annually at 8 percent. So does NSC and a few other instruments. It is wise to have a balanced portfolio and one that meets all your objectives.