Before you start investing in 2010…

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Each new year brings the opportunity for a fresh start. Some traditional new year resolutions are to revisit that long-forgotten gym, lose weight, quit smoking, and become healthier. For you as an investor, it is time to reassess your long-term financial goals and study where you stand in your efforts to achieve them.

Some of you might have resolved to cut down on your debts. Some might have also resolved to set aside more money for savings and investments. Some of you might have planned to become stingy with your credit card. And some of you might have set on course to become more proactive with your asset allocation.

Then, if you are like most investors, you might have vowed to bring your portfolio back in shape by the end of the year. You might have sworn of becoming even more disciplined with your investments.

All in all, as of today, you might be having one or the other financial resolution for 2010...a plan that will bring you closer to financial freedom. Isn’t it?

But if these resolutions aren’t backed by real intentions, you will have given up your admirable goals by February. By then, you will have overwhelmed by the task at hand.

And remember, if you are an equity investor, the task at hand this year is even more difficult than the task you had at hand in January 2009. With markets already at their highs, you might have to face a tough time this year in finding good quality stocks for your portfolio.

But that must not worry you? You only need to search a little harder. There are numerous companies in India that have brilliant long-term prospects and are yet trading at just a fraction of their future values. You only need to turn over lot of rocks to identify them. And the best guide you have in your search is your intelligence and independence. Dilute any of these and you risk making a mess of your portfolio.

So, as you start investing in 2010, be prepared for a challenging time. We are not trying to scare you. Treat these just as words of warning so that you are better prepared to tackle your investing future better.

And here are some final words of advice. Do not act in haste when you have nothing sensible to act upon. Stick with the golden rules of investing - buy quality, buy cheap, and hold for the long run. Study hard before you make any stock buying decision. And if you watch any business news channel, make sure the mute button is on.

See, whatever investment strategy you plan for the coming year, make sure it is one that you will stick with.

Keep it simple. And have a very profitable 2010!