Read: Sensex breaches 22,000 pts for the first time: How high is the new high?
• Bank stocks have gone up 10-15% over the last quarter. Be cautious about investing in them now though some pvt sector banks can offer good prospects if they correct 5-8%.
• It's easy to get carried away during a market rally. Invest through MFs, preferably via SIPs. By investing a fixed sum every month, you cancel out the volatility and give yourself a better than average chance of riding the long-term economic growth curve.
• Don't invest in more than 4-5 scrips at any given time.
• Don't invest more than 20-25% of your corpus in any one scrip. And always keep about 20% of your corpus in cash so that you can take advantage of any sudden opportunities that may arise.