Many people find investing a daunting task. There are many myths about it that prevent them from putting their money to good use. These myths can keep you from achieving the returns you desire.
What are these myths then? There are many myths. These are just a few of the many that could come up, as shared by Affin Hwang Asset Management (Affin Hwang).
Myth 1 – Investing is difficult.
This one is true to a degree, but the products can be very complex. However, there are many instruments that are easy to comprehend. There are many platforms available that can help you create your own portfolio, based on your abilities, risk tolerance, and needs.
Affin Hwang’s mobile investment app, Allocate Plus, is a digital solution that allows investors to transact Unit Trust Funds and Private Retirement Scheme Funds from their mobile devices, regardless of where they are located.
We also understand that potential investors may be discouraged by certain abbreviations or jargon. You don’t need to be worried about Allocate Plus. Allocate Plus simplifies the process by using terms everyone can understand.
Myth 2 – You should hire someone who can manage your money.
Yes, it is advisable to consult a financial advisor if you have millions in Ringgit and need professional assistance to minimize your tax. Experts are beneficial, but not essential.
You can save money if you are just starting your career and prefer to do-it yourself investment alternatives without having to watch your investments like a hawk. Automated online investment platforms are so simple, your grandma will be using them.
For example, Allocate Plus lets you open an investment account, top up your portfolio, redeem your investments and switch between funds without any human interaction.
Myth 3 – I need lots to invest.
If you believe that investments are only for wealthy CEOs, stockbrokers who drive Ferraris, or ‘atas’ investors, then you’re wrong. To start an investment portfolio that will deliver long-term returns, all you need is a little capital.
There are many ways to invest, and they don’t require a minimum amount. They are accessible for all investors and easy to use. These platforms can help you become comfortable with investing and allow you to start your journey early. Allocate Plus, for example, allows you to invest as low as RM50 and has no lock-in period.
Myth 4: Investing is very risky.
No doubt, there are risks involved with investing. But, very risky? Well, this depends on the type of instruments you’re investing in. Besides the conventional fixed deposits, money market funds, and ASB, lower-risk investment alternatives can also be found via unit trust funds and ETFs.
If you’re unsure about it, fret not. Most investment apps will assist you to plan your investment portfolio by asking you a few financial questions. AllocatePlus, for example, offers simplicity by simply letting you choose a combo portfolio that offers diversification to fit your financial goals.
Myth 5 – I’m too young for investing.
You’re young and living in the moment. This gives you plenty of time to consider investing when you get older. But you’re wrong. You’re missing the power of compounding interest.
Let’s suppose you invest RM1,000 in an investment tool that returns 5% annually. You will have RM50 more by the end of the year – this is simply interest. You will earn interest on both the initial RM1,000 and the earlier RM50 the next year.
Your interest earns interest, and your money will make more money as the years go by. It’s possible to start later, but the results won’t be quite as good. Check out the following comparison: