Investing can be an essential part of your financial portfolio. However, many of you might choose to stay away from investments irrespective of its benefits. The primary reason for fear of investments can be the myths about it. The perceptions or myths about investments can build fear in your minds. Therefore, let’s try to bust these popular myths about investment plans mentioned below and how you can tackle with them:
1. Investments can require an ample amount of funds
Many of you might assume that you might require a lot of money to start investing initially. However, this is not the case, as you can begin investing with minimal resources at a young age when your income might be low. For instance, if you start investing Rs. 5,000 every month, you might be able to accumulate Rs. 75 Lakh by the time you become old. As your career progresses further, you can increase the investment amount so that you get a chance to build a relatively higher corpus.
2. Investments can be a risky business
The most common myth about investments is that it can be a risky affair. According to a data report, only 2% of the people in India invest in stocks. While you might fear the market risks, you can actively participate in the capital markets based on your risk appetite. There are different investment plans such as Unit Linked Insurance Plan (ULIP), Equity Linked Savings Scheme (ELSS), and so on that can allow you to diversify your investment portfolio as well as secure your invested capital from market volatility.
3.Investments can be for a specific duration
As investors, you might have heard that you have to lock your money for a specific period or opt for long-term investment instruments. Staying invested for a long time can help you to accumulate wealth in the long run. However, many investment vehicles do not lock your money anywhere. Moreover, there might not be any fixed period of investment or any applicable charges for selling your investments. Today, it can be possible to access your invested capital at any given point whenever you need it.
4. Investments might require consistent tracking
Typically, many investment options might offer a return on investment based on the performance of the market. Although you might feel the dire need to track your investment portfolio consistently, you should avoid spending time on that. Typically, your investment can be effectively managed by financial experts or fund managers who are well-aware of the market conditions and can help you stay at par with your risk appetite. Rather than monitoring your investments daily, you can set up share price alerts to notify yourself about the market highs and lows.
5. Investments without expertise can be a fail
If you are investing in the capital markets, you might not have enough knowledge about the market. However, your lack of expertise or knowledge should not stop you from investing. If you are unable to manage your investments, you can have a fund manager to look after your investments. A fund manager can effectively keep a tab on the performance of your market as well as ensure that you make relatively high returns based on market volatility.
To sum up, the fear of investments might have long gone. Today, several types of investment plans such as ULIPs, ELSS, and so forth have been introduced in the market to tackle the fear of investments. Therefore, conduct thorough research on the available investment plans in the market and choose a plan based on your risk appetite and investment goals. That way, you can involve yourself fully in the capital market while your family is financially secure at the same time.