top of page

Investment Myths

Richard Hitchell

In this blog, we'll debunk five misconceptions about investing.



Understanding investments can be daunting, and there are several myths that are likely to put you off if you are new to investing. In this blog, we'll debunk five misconceptions about investing. By unravelling these myths, you'll gain a clearer perspective on how to navigate the world of finance and make informed investment decisions.

You need to be wealthy You can invest with less than you may think. Making small regular investments can provide more benefits than investing a lump sum. You can invest a small amount into the markets every month. One big benefit of investing a small regular sum is that, instead of saving your cash until you have a lump sum, you're putting your money to work straightaway. Even with rising interest rates, leaving money sitting in a bank account can be less profitable than investing it in the market.

It’s too much of a risk With any type of investment, there is a risk of losing your money. It’s all a balance between risk and reward, meaning the greater the risk, the greater the potential reward. If you understand the risks involved and the level of risk you’re comfortable with, you’ll be able to make an educated decision as to whether it’s worthwhile.

You need to know the best time to buy Most people think you need to invest when stocks are low and sell when they’re high, but there are so many factors that can change the stock market, it’s pretty much impossible to predict the outcome. The best thing to do is start investing as soon as you can for as long as you can. There may be fluctuation, some good and some bad, but the longer you’re able to hold onto your investment, the more time you’ll have to recover from any lows.

Your money will be inaccessible It is true that the longer you keep your money invested, the more chance you have of making a return, however this doesn’t have to mean your money is inaccessible. There are lots of investment options where you can access your money at any time. You should leave your investments untouched for them to have the most potential, but should a situation arise where you may need your funds, you will be able to access them.

You have to monitor your investments everyday Checking your investments every day can lead to risky decisions such as changing investments or withdrawing funds altogether. Investments usually span over a long period of time, so it’s best not to make potentially harmful decisions based on short-term market performance. If you’re opting for a low-risk investment, you won’t need to check it often. It’s recommended to monitor your investments every three months just to see how they’re doing.

 

Get in touch

If you’re interested in finding out more about how you could invest your money wisely, we’re here to help.


The value of investments and any income from them can fall as well as rise and you may not get back the original amount invested.


Past Performance is not a guide to future performance and should not be relied upon.


Approved by The Openwork Partnership on 30/06/2023

Commenti


Contact us - phone

CONTACT US

We’ve been providing expert financial advice for more than 45 years. Over the course of that time, we’ve learnt a lot about what our clients want and need, and how we can best serve their needs.

Enter your details & we'll be in touch to discuss your needs. Alternatively, contact us directly and speak to a member of the team.

01892 532700
Please contact me by

The internet is not a secure medium and the privacy of your data cannot be guaranteed.

Privacy policy l Best Execution Policy l Client Classification l Conflicts of Interest Policy l Your guide to making a complaintTerms of Use | 2nd floor, 8 Lonsdale Gardens, Tunbridge Wells, TN1 1NU

 

 

Hitchell Financial Planning Ltd is an appointed representative of 2plan Wealth Management Ltd which is authorised and regulated by the Financial Conduct Authority. Hitchell Financial Planning Ltd is entered on the FCA register (www.fca.org.uk) under reference 211675

Registered office: 2nd Floor, 8 Lonsdale Gardens, Tunbridge Wells, TN1 1NU. Registered in England and Wales Number: 07283512

The information on this website is subject to the UK regulatory regime and is therefore targeted at consumers in the UK.

 

© 2024 Hitchell Financial Planning

bottom of page