Investment is often recommended as a way to plan finances. This is because investments provide attractive returns. Even so, there are still many myths related to investing that make people reluctant to start.
It must be admitted that in fact there are still many people who do not dare to invest.
Various reasons can be a motivating factor for potential investors to be reluctant to start doing so. Indulging in investment myths is one of the main factors that make people afraid to invest.
So that you are more educated, this time Glints breaks some of the myths in investing so that you are more confident in investing.
1. Risk
Launching from Tirto , investment is often considered to have a high risk. Keep in mind, that investing has risks. However, the risk in investing is a measurable risk.
In fact, you can choose investments with low risk. But keep in mind, there is an expression that is, ” high risk, high return,” which means the greater the risk, the higher the profit.
Even so, you still have to understand your risk profile in investing.
This will certainly be different if you are stuck with fake investments. Often found investment offers that provide high returns but have a fairly small risk. You don’t get caught, okay?
2. Complicated
Another myth about investing is related to the process.
People are often reluctant to invest because it is considered complicated in the process. In fact, there are enough facilities provided to make investments.
This is evident from the increasing number of applications that can be downloaded to make it easier for people to invest.
In fact, an investor no longer needs to come to a financial institution and submit various requirements.
You can start investing only through your smartphone .
3. It took a long time
Not a few people think investing needs to spend quite a lot of time. The reason is because they have to often see the development of their investments. That statement is wrong.
This myth occurs because there are still many people who think that investing and trading are the same thing. However, these two things are different.
In investing, you don’t even need to watch the progress too often. Because the ultimate goal of investment is long-term profit.
4. Need a lot of capital
Another assumption that makes many people discourage from investing is that investment requires a lot of capital.
Actually, the capital needed to invest varies depending on the type.
However, there are enough investment instruments that do not require a lot of capital. You can own gold, as well as stocks, which are popular investment instruments today.
This happens because there are more and more applications that make it easier to invest.
5. Like gambling
This last myth is widely heard by ordinary people. This is also confirmed by Bisnis.com which states that one of the myths circulating is that investing is the same as gambling.
This can be dismissed because gambling and investing are very different things.
In gambling, the profit gained is merely luck that comes from speculation.
In contrast to investment, where the profits are obtained because of calculations with a reliable scientific method.
An investor certainly needs to have a good analysis if you want to be successful in investing.
Therefore, it is no longer necessary to equate investment with gambling, because investment has measurable results, while gambling does not.
Those are some of the myths about investing that you should know. By knowing these myths, you can be more confident and careful in making investments.