Before you invest, make sure you understand how an investment works, the fees involved, and whether it fits with your risk tolerance. It is important that you do not let your adviser sell you products you don’t understand. As a wise investor, you must know exactly what you are buying.
In order to make a good choice, here are a few questions that you can ask your adviser:
Why do you recommend these particular funds or securities rather than others?
How much are you earning as a commission?
What are the tax consequences of a particular investment?
Before you finalize your decision, here is some good advice:
Ask lots of questions about any investment that is recommended to you.
Always ask about potential risk associated with any investment.
Consider high-risk investments and leveraged investment strategies very carefully before agreeing to them.
Always read the prospectus or offering memorandum before purchasing a security.