6 Lies People Believe About Investing
Investing is both an art and a science - but there are certain untruths that people believe about investing that can harm them in the long run. Here are 6 common lies about investing.
It’s Only For Older People
Investing is for everyone, even college students who don’t earn a salary - you can start investing even with your pocket money! The sooner you start, the better.
There is some risk involved but you can always choose asset classes based on your risk appetite and goal. Stock markets are volatile, but if you stick it out, you can make money in the long term.
You Need To Do What Everyone Else Is Doing
Herd mentality is a no-no. Instead of giving into peer pressure & investing blindly, do your research & pick funds & stocks to suit your financial goals.
You Have To Consider Recent Events
This is known as recency bias. Investors latch on to a fund that has topped short-term return charts while ignoring consistency of performance over the long term.
You Must Avoid Loss At Any Cost
Loss aversion bias is the tendency to avoid losses over maximising gains. This can lead to poor investment decisions.
It Takes Too Much Time
Investing can be time-consuming if you choose to invest in stocks yourself - but it can be easy and convenient if you opt for mutual funds.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully.