• Part I: 'Sensex will hit 11,500 by Dec'
• Part II: Here's the safest way to invest

The Sensex has crossed the magical 10,000-mark and is heading to set new records. But will the bull run continue? Here's a peek into experts' opinion on how you can invest safely and smartly.

In the third part of this special series, Ajaye Ruia, chairman, Allstate Group, speaks about the sectors you need to keep an eye out on.

Watch out for automotive, infrastructure, cement sectors, he says, and adds: "Don't panic and spread your holdings in fixed income securities and equities."

Do you think the market will go higher? Where do you see it this year?
Barring any natural disaster, the market is likely to go 10 to 15 per cent higher.

What would be your advice to retail investors?
The retail investors should find mutual fund as the safest bet. Other stocks might not go up as expected. Mutual funds have all the facilities to conduct research on the companies.

Where are the good investment options?
The investor should spread his holdings in fixed income securities and equities. He should cash out on over-valued stocks and buy them again when there is a reaction. 

Which are the sectors that are likely to boom?
Automotive, infrastructure, cement are the sectors that are likely to benefit the most.

What type of stocks should the investors look at now?
Naturally, investors should look at the above-mentioned sectors that are likely to boom.

Should you invest directly in stocks or through a mutual fund?
One needs to identify a good mutual fund, as each MF has a different offering. A thorough study of the same is needed prior to making an investment.

Five mistakes small investors must avoid

• Following tips blindly
• Using borrowed money
• Be panicky
• Not keeping track of one's holdings
• Not making risk comparison over the longest possible period

Five basic norms of smart investing

• Distributing wealth over a variety of options. Never ever put all your eggs in one basket
• Read articles on the economy. Do your homework.
• Get a good broker.
• Follow your broker's advice.
• Go for systematic investment plans. They are a good option at this juncture.

Don't miss the 4th part of the series tomorrow!