Investment Myths

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From misconceptions about time commitment to the amount of risk involved, we bust 5 investment myths

When it comes to investing your hard-earned money, misinformation or hearsay may be holding you back. We bust a few common investment myths that may be stopping you from building your wealth.

Myth #1: I’m too young to start investing

When you’re young, it’s difficult to look too far into the future. You’re living in the moment and enjoying a vibrant social life. There’s plenty of time to think about investing when you’re older, right? Wrong. Time is of great advantage when it comes to investing. Long-term investment strategies tend to be less volatile and may help build your wealth through compounding of interest.

Myth #2: Investing requires a substantial time commitment

Many people believe that they must commit long hours to monitoring their investments – this couldn’t be further from the truth for certain type of investments. Many investments demand a long-term strategy or are professionally managed and require little monitoring.

Short-term share trading does require some time and effort in constantly tracking market movements and companies’ performance so that you have enough information to make the right investment decisions. But even here, a platform like SC Online Trading can provide you with powerful research tools to help you easily analyse market movements and identify market entry and exit points.

Myth #3: Investing is for the rich

If you think investing is just for cashed-up CEOs and Ferrari-driving stockbrokers, you’re mistaken. You don’t need millions to start an investment portfolio – even a small capital investment may deliver returns over time. Investments such as Unit Trusts may potentially support diversification across different asset classes and geographies, depending on the fund’s investment strategy. These are available with a minimum investment amount as low as S$1,000, or through a Regular Savings Plan (RSP) with a monthly investment as low as S$100.

Myth #4: You need to be knowledgeable about the market to invest

While it’s true that investing in the stock market requires considerable expertise, there are many other investment methods that only require some basic market knowledge. For example, Unit Trusts employ expert fund managers who decide how, where and when to invest the money that you contribute. And it has never been easier to access good financial advice. For one, Standard Chartered Bank’s click to chat service connects you to expert financial advice in just seconds.

Myth #5: Investing is too risky

Most of us have heard stories about people losing their money in failed investments. Reach out to reliable and expert financial advisors who can help you plan your investment portfolio based on your financial goals and risk appetite. You can also talk to them about diversifying your portfolio, spreading your investments across a range of aggressive, high-risk and conservative, low-risk asset classes. This may potentially help to mitigate risk while maximising returns.

Conclusion

Investing isn’t as complex, time consuming or risky as you may assume. With a reliable financial advisor, you can put together an investment portfolio that suits your financial needs. And the younger you start, the more time you have to build your wealth over the long term.

Ready to start? Talk to our financial advisors today. Get in touch with us.

Alternatively, log onto Mobile Banking or Online Banking to chat with us and we will help to connect you to a financial advisor.

This article is for general information only and it does not constitute an offer, recommendation or solicitation to enter into any transaction. This article has not been prepared for any particular person or class of persons and it has been prepared without regard to the specific investment or insurance objectives, financial situation or particular needs of any person. You should seek advice from a licensed or an exempt financial adviser on the suitability of a product for you, taking into account these factors before making a commitment to purchase any product. In the event that you choose not to seek advice from a licensed or an exempt financial adviser, you should carefully consider whether the product is suitable for you. You are fully responsible for your investment decision, including whether the the investment is suitable for you. The products/services involved are not principal-protected and you may lose all or part of your original investment amount.

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