Myth 1: Investing is complicated.
Okay, this one does have a certain degree of truth to it because the products out there can be quite complex. HOWEVER, there are also many other instruments that are quite simple to understand. Plus, there are many platforms that are ready to help you set up your very own customised portfolio based on your needs, abilities and risk tolerance.
For example, Affin Hwang’s official mobile investment app, Allocate Plus, serves as a digital solution for investors who are looking for a seamless method of transacting Unit Trust Funds, and Private Retirement Scheme Funds through your mobile device no matter the time or place.
Apart from that, we understand that there are a number of abbreviations and jargon that can discourage potential investors like you from investing. With Allocate Plus, you don’t have to worry. The app provides simplicity by using terms that everyone can understand!
Myth 2: You should hire someone to manage your money.
Sure, if you have millions of Ringgit and require professional help to figure out how to minimise your tax, it’s advisable to have a financial advisor. And of course, there are plenty of advantages to using experts, but they’re NOT ENTIRELY NECESSARY, and not to mention, COSTLY.
If you are just starting out, prefer a do-it-yourself investment alternative without the hassle of watching your investment like a hawk, you can absolutely save yourself the fees by using automated online investment platforms that are so easy to use, you’ll be recommending your grandma to use.
Allocate Plus, for instance, lets you open a new investment account, top-up your investment portfolio, redeem your investments, as well as switch between the funds offered without the need for human interaction!
Myth 3: I need lots of money to invest.
You’re mistaken if you think investments are just for the ‘atas’ people, cashed-up CEOs and Ferrari-driving stockbrokers. The truth is, you just need a small capital to start an investment portfolio that can deliver returns over time.
Thanks to the internet and technology, there are multiple avenues to invest which don't have high minimum amounts. Even better, they’re accessible and viable for all kinds of investors. These platforms will help you get comfortable with the idea of investing so you can start your investment journey early. For example, Allocate Plus provides the flexibility to start investing with as little as RM50 with 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.
Additionally, there’s a clear identification to users on the risk rating of each of the Fund. These insights do not only provide you with easy access to a diversified portfolio but also helps to mitigate risk while maximising returns.
Take note that no matter what your appetite for risk is, there’s an investment match out there for you - whether you’re super cautious, highly adventurous, or everything in between. The key is to understand the risks involved and know how much you can stomach.
Myth 5: I’m too young to invest.
So, you’re young, living in the moment and enjoying a vibrant social life - plenty of time to think about investing when you’re older, right? Wrong. Because you’re missing out on the power of compounding interest!
Let’s say you invest RM1,000 into an investment tool that gives an average return of 5% per annum. By the end of the year, you will have RM50 more in your account − this is simple interest. The next year, you will earn interest not only on the initial RM1,000 but also on the RM50 you earned earlier.
In other words, your interest earns interest and as the year goes by, you will start seeing your money make money for you! The same still applies if you start late, but it wouldn’t be as optimum. Take a look at the comparison below:
|Start Age||Investment period
|Compound period up to age 60
|Total Amount Invested
|Total investment value at age 60
** For illustration purposes. Doesn’t indicate the past or future performance of a specific investment tool.
The table above shows that by starting 10 years earlier, you are exponentially increasing your return on investments. So make the most of it while you can!
The moral of the story: Don't let folktales run your financial lifeThe best defence against common investing myths is financial education. If we have a shared understanding of the facts around sensible investing, we can combat misconceptions more effectively.
Anyway, if you’re looking to dip your toe into the world of investment, let us suggest Allocate Plus to start your journey.
All you need is a mobile phone to set up an investment account and RM50 to start investing in a wide range of products including award-winning Unit Trust Funds, and Private Retirement Schemes - whether it’s a conventional or Shariah-compliant investment solution. You will also get to access a broad range of asset classes (equities, fixed income, and even Gold), and gain investment exposure outside of Malaysia.
Check out the video below to know more about Allocate Plus:
Interested? Allocate Plus is available on Google Play and Apple Store. Download and start investing today!
For more information or if you have any questions, check out its FAQ page.
*The above article is intended for informational purposes only. Loanstreet accepts no responsibility for loss that may arise from reliance on information contained in the articles.