Some of the ways to avoid investment frauds are:
• If the company is giving out extremely high returns then avoid that company and its stocks.
• If the company does not have independent auditing done, then it should be avoided.
• If there is any high pressure sales techniques that presses the investors to invest quickly then that company is better avoided.
• You must check before investing whether the investment is regulated and verifiable. If it is not regulated then don’t invest.
• Same is the case with the personal back ground check of the company and the promoters. If it can’t be done easily then they may be frauds.
• If the investors are asked to invest in same types of funds without giving them an option for diversified funds, then it is better to altogether avoid that company because if it declares loss all the money will be completely lost.

Whatever you do remember no two people will have equal gains from similar portfolio. The best investing lessons for any person would be:
• Do your own research. Before investing a single dollar do as much research as you can through internet books and other people. This will give you a basic idea of the market.
• Never do as your friend s doing. Your investment needs will be unique and it can not be compared to anyone. Invest in the instruments that fulfill our financial needs.
• Believe in the market sentiments that it is emerging. So never invest with any doubts in your mind. The stocks and securities from reputed companies may show loan gains but they will provide sure and secure profit to you.
• Change or modify your investment portfolio whenever you feel that certain instruments are not behaving as they should. This means keep your portfolios flexible.

At the times of volatile market and recession, it is very important to protect your investment so that you are not financially ruined. To avoid a financial disaster you must take a few steps that are both psychological and physical.

• Don’t invest hastily in the market whenever you see a slight increase. Neither should you panic if the market seems a bit shaky. These are normal upheavals that will anyways once the market tries to stabilize.
• Real estate is a great place to invest to protect your investment. The reason is that the real estate will also be hit during a recession and you can invest profitably as it is bound to increase as property would be required by everyone to live.
• Gold is also a very good investment to protect your money. Gold will be inversely proportionate to the stock market and in a condition where stocks are losing sheen gold will glitter.

A tax efficient investing can only occur when the tax paid on both capital gains and income is reduced or minimized. It also is required that value is maximized by having tax efficient investments in tax free and taxable account and lesser tax efficient investment are held in tax deferred accounts.

• Hold the stocks more than one year as then you have to pay less tax on the profits. The tax on profit for stocks held less than a year is as much as 35% whereas for the stocks of one year or more, it reduces to 15%.

• Hold tax efficient index fund, mutual funds and low turnover funds in Tax free (Roth)/taxable account. The active funds that give short term capital gains can be held in tax-deferred accounts.

• Put municipal bonds that are most tax efficient in taxable account and high yield bonds in tax deferred accounts.