Five Myths of Investing

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Myth 1: Investing is only for the wealthy

Many people believe that you need a lot of money to start investing. This isn't true. You can start investing with small amounts of money. There are many investment options available that allow you to start with as little as R100 or even less. The key is to start early and invest regularly, no matter how small the amount.

Myth 2: Investing is too risky

While it's true that investing involves risk, not all investments are equally risky. There are safer investment options like bonds or multi-asset funds that spread your money across different types of investments to manage risk. It's also important to diversify your investments, so if one doesn't do well, others might perform better. Understanding your risk tolerance and choosing investments that match it can help you feel more comfortable.

Risk. Diversification and asset allocation may not fully protect you from market risk.

Myth 3: You need to be an expert to invest

You don't need to be a financial expert to start investing. There are many resources available to help you learn the basics, such as books, online courses. There are also financial advisors and investment options that are managed by professionals, so you don't have to make all the decisions yourself. Starting with simple investments and gradually learning more can help you build confidence.

Myth 4: Investing is like gambling

Investing and gambling are not the same. Gambling is based on chance, while investing can be based on research and strategy. When you invest, you are putting your money into assets that have the potential to grow over time. By doing your homework and making informed decisions, you may increase your chances of success. Investing is about building wealth gradually, not making quick, risky bets.

Risk. There is no guarantee that research capabilities will contribute to a positive investment outcome.

Myth 5: You can time the market

Some people believe they can predict when the market will go up or down and make investments accordingly. This is known as "timing the market," and it's very difficult to do consistently. Even professional investors struggle with this. Instead of trying to time the market, it's better to invest regularly and stay invested for the long term. This approach, known as "dollar-cost averaging," helps you buy more shares when prices are low and fewer when prices are high, averaging out your investment costs over time.

Risk. There can be no guarantee that the investment strategy can be successful, and the value of investments may go down as well as up.

Summary

In conclusion, investing doesn't have to be scary or complicated. By debunking these myths, you can approach investing with more confidence and make informed decisions that align with your financial goals. Remember, it's never too late to start, and even small steps can lead to significant growth over time.

Capital at risk. The value of investments and the income from them can fall as well as rise and are not guaranteed. Investors may not get back the amount originally invested.

Past performance is not a reliable indicator of current or future results and should not be the sole factor of consideration when selecting a product or strategy.

Changes in the rates of exchange between currencies may cause the value of investments to diminish or increase. Fluctuation may be particularly marked in the case of a higher volatility fund and the value of an investment may fall suddenly and substantially. Levels and basis of taxation may change from time to time and depend on personal individual circumstances.

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