Are these Investment myths holding you back?
The term “investing” can signify many different things to many different people. Investment options are numerous and are generally thought of as being reserved for the financial elites who have extra cash and access to specialised knowledge. There are many possibilities depending on your investment budget and interests, but one thing is certain: investing is accessible to everyone.
Here are some common investment myths you have heard or even read that might just be holding you back from starting your investment journey.
Myth 1: You have to be wealthy to start investing
This may have been the case historically, but with the greater variety of investment choices available now, it is much easier to obtain now. Anyone can now invest with as little or as much money as they like thanks to the accessibility of online fund platforms and investment counselling services.
Myth 2: You need to be an expert to invest
Even though investing in something like shares entails some risk, you can place some smart bets by closely monitoring the markets. Global supply and demand, geopolitics, interest rates, and the general state of the economy are just a few of the many variables that influence share investments. Several share dealing systems will provide you with useful share and market analysis as well as weekly, daily, monthly, and yearly share price ranges.
Myth 3: It’s a quick way to make money
This myth is flat-out untrue, and many people have lost everything by looking for a quick buck. Investments are and have always been a longer-term investment.
People are correct to be particularly wary about parting with their hard-earned money because investing hasn’t always had the finest reputation — with the dotcom and 2008 crash in recent memory as well as the current coronavirus market crash.
Having said that, there are many different types of investing packages available to suit all budgets, so there is something for everyone — from novice investors to seasoned market players, but getting the right advice is crucial! While we should always exercise caution, investing can also be rewarding, enjoyable, and a positive activity.
Myth 4: You have to regularly monitor your investments
Although it can be tempting to keep a close eye on your newly purchased shares, maintaining some perspective is beneficial. For instance, if you are new to share investments, we advise checking the shares at the market’s opening, lunchtime, and closing times with alerts set up to inform you of any price spikes or drops.
You can put money into a multi-asset fund on a regular basis and then essentially forget about it. You should still check on it every so often, but it’s a low-maintenance investment strategy.
Myth 5: Investing is too risky
Undoubtedly, there is a danger, and you might not always get back the full amount you put in, but every investment is weighed according to its level of risk. We have the high-risk end of the spectrum on the one hand, such as hedge betting, where the original investment can make or break you. On the other hand, we have lesser risk investments for the novice and cautious investor. Investments may fluctuate, but they tend to do so across a smaller range of values. This is a fantastic method to try to make your money work for you, as these investments may provide respectable returns.
Why take the chance? You might be able to expand your money if you take a calculated and reasonable risk.
Before you commence on your Investment journey, find out what kind of investor you are by clicking on this link: What kind of investor am i? (scroll down to the bottom of the page and find out by sliding the bars)
We hope that clearing up some of these investment myths will spur you on to commence your investment journey on Wealth.ng