There are a few Golden Rules of investing…apart from the most important one..’The Man who has the Gold, makes the rules’ …apart from that the other rules are:

1. Do not abdicate financial understanding: “I trust my adviser” is not always a statement of faith. In many cases I know, it is a matter of laziness or convenience. Do not do it. It is necessary for you to know why somethings are being done, how, and what are the implications.

2. Ask sensible questions: Ask your adviser why certain things are being done. If you do not understand and you do not ask, you might be in trouble later on. Do not assume, ask.

3. Trust your adviser: trusting your adviser should be an exercise that is done diligently. Do not think “he looks fine”, “he dresses well” “goes to the same club”. Also to remind you of what Ronald Reagen (late President of USA) said “trust, but verify”.

4. Do not issue cheques in the name of the adviser: Asking the adviser to pay the premium on your behalf is not a good idea – but people routinely do it, and then repent.

5. Choose your adviser carefully – read Deepa Venkatraghavan’s book ..(What your financial agent will tell you, and you should not listen) regarding about your agent’s lingo (or relationship manager of a bank) and then chose your agent.

6. Ask the agent about conflict of interest: Check who is paying him, how much, etc. – and check out whether that is more than what you have been told.

So these if you ask me are the Golden rules – the real ones!