SEC Issues Investor Bulletin on Investing Tips for 2015
The SEC issued an Investor Bulletin, titled "15 Investment Tips for 2015," which provides 15 tips to help investors make "informed" financial decisions and avoid common investment scams in 2015.
The tips include the following:
- always check the backgrounds of investment professionals;
- promises of high returns with little or no risk could be red flags for fraud;
- diversification can help to reduce overall risk;
- mutual funds and similar investments are not guaranteed or insured by the FDIC or any other government agency;
- active trading can undermine investment performance; and
- certain investments can provide tax advantages.
The SEC reminded investors to contact its Office of Investor Education and Advocacy, either online or on its toll-free investor assistance line, (800) 732-0330, with any questions about investments.