5. Ignore the herd mentality

Dravid displays tremendous single-mindedness. His attention is on the game and off the arena. He stays free of distractions. He stays focused on the game and his strategy.

Even if Sehwag is hitting fours and sixes of every ball at the other end, Dravid will stay calm and composed and play his own game.

His hunger for runs, his concentration for long hours at the crease is admirable. Even under an unforgiving sun, Dravid does not waver.

Just because everyone and his aunt is buying a stock (or even talking about it), it does not mean it is meant for you.

Just because everyone has invested in the latest sector fund (mutual funds that buy shares of companies of a particular sector), it does not mean you have to follow suit.

You must spread your money among various investments and not get swayed by what is happening around you. Stick to your overall strategy.

Always keep some money in safe options. Here you have a choice that includes the Public Provident Fund, bank fixed deposits, bonds from institutions like IDBI and ICICI and post office saving schemes. Also consider an insurance or a pension scheme.

Then consider a balanced mutual fund (invests in shares of companies as well as in fixed return instruments like bonds) and a diversified equity mutual fund (invests in shares of companies of various sectors). This will allow you to participate in the stock market where an expert does the buying and selling of shares on your behalf.

If you still desire, you can invest directly in the market (you yourself buy the shares of companies). You can even invest in sector funds.

Do note, if you are in your 20s, then keep around 70% of your total investments in balanced funds, diversified equity funds and sector funds. You are young and have the stamina to ride the ups and downs of the market. Should you even lose, you have the time and earning potential to make it up.

Get started! Investing can be fun if you know how to play the game.