Is your financial progress stuck at one point? The chances are that your limiting beliefs are preventing you from creating wealth. Successful investors made their money because they had a positive mindset about investments.
Let’s debunk the top five investment myths for you to step ahead in your financial growth.
Myth 1: Savings are the Best Way to Secure Future
There is no denying that you must save regularly from your income for financial security. However, the problem arises when you let your savings sit idle in the bank or store it as hard cash in your locker.
You should rather make your savings work through investments in various debt and equity instruments. These investments will you give income or profit that you can re-invest to earn more money.
Myth 2: Investing is Only for Rich People
You need money to make money. Yes, that’s true. What’s not true is that you don’t need a lot of money to begin your investment journey. You can start investing with as little as Rs500 in stocks or a Systematic Investment Plan (SIP). So, even if you have a low income or just begun your career, or are a housewife or a student, you can become an investor.
Myth 3: Fixed-Income Instruments are the Safest Bet
The believers in this myth are most likely to invest their savings in fixed deposits, post office schemes, public provident funds, etc. The general assumption is that these instruments give fixed returns and carry zero risk of loss. However, these fixed-income instruments give lower returns, especially after considering the inflation rate. They also carry some degree of risk. On the contrary, investments in mutual funds, bonds, equity stocks, or debt securities yield better returns in the long term.
Myth 4: Stock Market Investment is Too Risky
While it is a fact that the stock market risk meter is prone to fluctuations, you can offset it with calculated risks. There are several investment options that you can consider as per your risk appetite and budget. You should view the stock market as a way to diversify your investment portfolio to maximize returns and minimize risks. If you are still apprehensive, you can try investing in mutual funds or SIP. You can track the daily Net Asset Value (NAV) to assess the returns. You can then move on to debt or equity stocks as per your comfort zone.
Myth 5: You Should be an Expert to Invest in Stock Market
This is one of the most common myths about investing but not true. Whether you are an amateur or an experienced investor, you are always required to research stocks and monitor their performance regularly. There are ample online and offline resources available these days to understand how the stock market works.
Conclusion
Financial growth is possible only when you allocate a part of your savings to stock market investment without any doubts or fears. You can seek the professional expertise of Ajmera x-change, a leading stock market and mutual funds investment advisor. We can help you manage your money with more confidence and recommend options as per your investment goals.