Have an 'Investment Objective'
Create for yourself an objective to perform wiser investments. This objective helps you choose between schemes that satisfy different objectives.
Read the offer document carefully before investing. Though it may be lengthy, you must at least read the sections on risk factors, litigations, promoters, company history, project, objects of the issue and key financial data.
Don't hesitate to approach professionals.
Although you may be tempted to make your own investments, it may be smarter to trust options that offer a professional management of investments, for example Mutual Funds.
Deal only with registered intermediaries.
You may need a broker to invest in many financial instruments. And a good broker might be the difference between a good, safe investment and a bad, money-losing investment. That's why, it is important to deal with brokers who are registered with the regulatory authorities.
The SEBI approval
Always look out for those companies that have been approved by the SEBI. The regulations laid down by the SEBI make for wiser investments with an official corroboration.