Investing could be daunting at first for potential new investors. With the rise in inflation rates, your savings could be in jeopardy if not managed properly. Investment is an effective way to beat inflation and grow your returns when done the right way. 

Numbers, charts, and jargon do seem to cause a slight hesitation among new investors, but nothing comes close to investment myths that can be downright misleading.  

We are busting 4 investment myths to make your investing journey a little less scary! 

Myth 1: If You Are Not An Expert, You Cannot Invest

One of the biggest myths about investing is that it is best handled by experienced individuals. Some even think that it is only for people with financial backgrounds. 

Yes, it might be easier for someone with a financial background and experience to start investing but that does not mean he or she will become the next Warren Buffet. Acquiring knowledge about investing is now easy and you can access the right resources within seconds.  

Once you have mastered the basics of investing, you could choose to invest in areas of your interest. When you have in-depth knowledge about a particular industry, you might be able to predict and judge their performance and growth strategies to make sound investment moves. 

If you are a beginner, you can kickstart your investment journey with mutual funds and Robo-advisors where your portfolio will be managed by a professional fund manager or an investing algorithm. And, as you equip yourself with investing knowledge and learn the nuances of investing, you can slowly take more charge of your portfolio. 

Myth 2: You Must Be Rich To Invest

Indeed, you need to have a sustainable income or capital to start your journey, but it does not necessarily mean that you must be rich to invest. The key here is starting early, with moderation, and consistency. The earlier you begin, the faster you can start reaping the benefits of compounding. 

There are multiple sources of investment that you could divulge which requires little to no minimum amounts. Stashaway is a perfect example. Once you have set up your emergency funds and settled your debts, you can start investing with RM1,000 or even less. 

Myth 3: Investment Is Solely Limited To Stocks

Stocks might be the first word that pops up in your head when someone says investment. Investing is much more than just stocks. There are countless other investment avenues out there that have their own risk and returns associated with them. 

Bonds, cryptocurrencies, real estate, and commodities are just some other options to be considered based on your preference and experience. 

Since diversification is crucial for investment, you can explore these options to see which suits you best. Having a diversified portfolio helps alleviate the risk and guarantees a better return even when some of the investments are underperforming due to market conditions. 

Myth 4: Understand The Best Time To Buy Or Sell

Of course, it makes perfect sense to buy stocks when they are cheap and sell them when the prices hike up. The concern here is not about buying low and selling high, rather on how to know when the stock price has reached its bottom or peak, which can be tricky even for seasoned investors. 

Technical analysis is a skill worth acquiring. Experienced investors leverage this skill to give them a better prediction of the movement of a stock in the market coupled with fundamental analysis of the industry itself. Even with all of this, it is still impossible to find the best time to sell and buy.

Often, people get too tangled up with the best time to buy or sell and tend to make rash decisions. They either sell or buy too early, diminishing their returns while increasing their losses. Investment is not just about selling and buying immediately; you could also opt to stay longer in the market. In fact, It is one of the best ways to deal with market volatility. 

Don’t Let These Investment Myths Hold You Back

Investment can be risky if you go at it without adequate knowledge and the right skills. We hope we debunked some of the myths that held you back from stepping into the world of investment.