Investing is complicated...
- SIP is not meant for me…
- The Market is risky…
- I will buy a Life insurance policy...
- I am saving in PF …
Now What, Let’s correct these myths… and get you started with the right investment journey.
There are so many myths that are running around the internet. Thanks to Whatsapp university, Google fake guru tips, thus holding back the genuine person of interest from making the safe and planned investment in the market.
- Investment is complicated: This is one of the stepping stone excuses that a procrastinator gives to understand the financial investment. Don’t worry, I got you covered with many baby steps to start with the right approach to investment. If you have time for sending WhatsApp messages or watching videos on Netflix or even this video, you can learn the investment basics from the right source and start your investment. Today online platforms like Kuvera, Zerodha or ETMONEY(Links in description) will allow you to invest in various types of mutual funds from your phone. So you can open an account in mutual funds and invest as low as Rs. 500 to buy a part of the entire stock market with mutual funds.
- Savings is enough, I don't need investment: Saving is one of the baby steps towards achieving financial freedom but it's not the goal of the journey. If you save 100 rupees in your bank account, you get 3-4% on your 100rupees. But whereas inflation is 5-6%, you are witnessing an erosion of your rupees in front of your eyes. Make sure you park your 100 rupees in the right place. Follow step one to approach investment in the right way. Therefore the 100% invested in mutual funds will generate on average 12% thus generating wealth to beat inflation.
- PF is sufficient for retirement: PF should only be part of your retirement corpus generating tool. Given the PF rate changing year on year, PF alone cannot generate the corpus you wanted to secure your retirement life.
- Time the Market: Studies have shown, chances of timing the market is less than 5%. It's a big risk considering investing a lump sum in one shot. No one is clear on if the market will go up or go down. Thus you are well off investing regularly for a very long time allowing the market to correct itself. Always TIME IN MARKET IS IMPORTANT THAN TIMING THE MARKET.
- Buy more funds because someone said diversify: Just because someone said don’t put all your eggs in one basket, you should not go on a shopping spree and invest in star-rated mutual funds. IT'S A BIG NO. Just have 3-4 mutual funds across equity, debt, gold and if real estate is your cup of tea, then invent in land, house, or flat.
- Buying Life Insurance as Investment: We all have been there and done that. Never mix investment with Insurance. Just buy Term Insurance for the purpose of insurance at a lesser premium cost.-Watch and read my blog article here. For investment, use any of mutual funds or other investment tools to the investment choices.
To sum it up, investing myths could hold you back from doing the right thing. So, do not let such myths drag you down. The next time you read one of these investment myths on a WhatsApp forward, you know how to avoid it like an informed investor!
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