10 Investing Myths You MUST Debunk
3 mins read

Investing is never black or white! And the gray area in between is filled with myths and half-baked truths.

Beginners are often caught saying, “I don’t have much to invest” or “I don’t understand ‘I’ of investing” and then they just give up.


Before believing anything, especially about investing, you need to do a fact check. Many of these never-breaking myths are actually observations that proved to be accurate. But what we fail to understand is that even if something was true under some circumstances then, for a particular context, it does not become a thumb rule for you.

Truth be told, some of these myths simply refuse to die! That’s why it's time we debunk some of the most notorious and timeless investing myths.

1. Investing; It’s complicated

The right statement would be ‘Investing is complicated, if you want it to be!’.

If you go for active investment strategies and track every movement of the market, it will undoubtedly be complicated. But why choose challenging, when you can make equally good returns with passive investing?

Thanks to online investing platforms like RuDo, investing is as easy and fun as scrolling through Instagram. All you need to do is register, and in less than 5 minutes, you can start building a wealthier future.

2. You need to invest a lot if you wish to build a lot

This myth is huge! Millennials avoid investing because they assume that to yield better returns, they will have to invest large sums of money.

But hello! Haven’t you heard of micro-investing? It allows you to invest small amounts based on your investment preferences. Spare change investment is one of the micro-investing strategies to build wealth and literally become a millionaire by investing pennies over years with the magic of compounding.  

It helps you save and invest small amounts consistently to take you one step closer to financial freedom

So, are you ready to start investing with AED 20?

3. The stock market is the only option to invest in

Look around! The days of bulls and bears ruling the world of investing are so in the past.

When we talk about investing the very first image that pops is of a blue-black screen filled with numbers going low and high. But there are other options that you can invest in and diversify your portfolio. Options like ETFs, bonds, real estate, commodities, and even currencies are other asset classes you can try if the stock market makes your head roll.

4. Riskless investment is a possibility

We are truly sorry to burst that bubble, but there is no such thing as a riskless investment. Any and all investments, whether it is mutual funds, stocks, or bonds carry some type of risk.

Though there is no way to guarantee returns or invest without any risk, there is a possibility to minimize the risk by balancing it. Investment strategies like ETFs are considered to be low-risk investments as compared to individual stocks, and bonds, because of the diversification they offer.

It is always recommended to invest your hard-earned money based on your risk appetite and time horizon rather than just investing to get returns.    

5. Analysis and research are in every investor’s blood

You do not have to be Sheldon Cooper to grow a wealthy future. Analysis and research are 101 of investing, but that does not mean you’ve to be knee-deep in books and market analysis to get good returns.

Passive investment offers options like Roboadvisory that can do it all for you. These apps do the heavy lifting by investing your money in the appropriate securities based on your goals and risk appetite.

However, we don’t suggest that you stay completely uninvolved, or proceed without any study. After all, knowledge is power!

6. The right time to invest is…

That blank can be filled with any misconception like ‘after loans are paid’, ‘after I earn good enough’, ‘after the market goes up’, and whatnot. But the correct answer would be ‘today’! The right time to invest is today and now.

The most common saying in investing is, ‘the earlier you start, the earlier you become a billionaire’. Your reasons to delay investing are costing you much more than you can imagine.

Timing has another meaning in the world of investing. It refers to the rise and fall in the market. And most investors focus on timing the market, but it is not as easy as it may sound. Timing the market increases the risk significantly, and if you are a long-term investor, you are better off investing regularly.

Putting that in perspective, when it comes to investing, time IN the market makes more profit than timING the market.

7. Investment is for Pro players only

It’s not the popular kids that beg the prize, it’s the sincere ones. You might fall for the myth that popular stocks or professional investors are the only ones to gain in the market.

Professionals indeed have an advantage, but individual investors have something professionals don’t; small accounts and flexibility to be patient. Professional fund managers focus on beating the market when you can absolutely make profits without doing so.

If your idea of investing is to grow wealth in the long-term, we suggest you go with diversified options like ETFs and Mutual Funds and expand your horizons.

8. Investing is like playing in a casino

Everything is subject to market risk, so is it fair to compare investing with gambling? We strongly disagree!

Investment isn’t a game of chance or some tricks, it should be perceived in a systematic way to create value and grow steadily. Another major difference is that during an investment, you choose the level of risk, when to invest and when to pull out and try to manage portfolio risk with an investment strategy in mind.

9. Nothing is safer than investing in Gold

What are you investing in? Gold!

Why are you investing in Gold? Because it’s safe and always appreciated in value!

Is investing in gold really safe? NO! That’s a myth

Gold is a proven long-term hedge against inflation but not always. Like any other assets, Gold prices also go up and down, and its performance can be negative in the short term. While building your long-term portfolio, you should allocate some gold to diversify and get downside protection during uncertain times.

There is no guarantee of return, no interest or dividends, and your investment’s intrinsic value does not increase. Therefore, investing in gold is a safe choice, but can prove negative as a short-term investment.

10. Investing in insurance policies is equal to investment

Oops! That’s a big error.

Life insurance policies and other insurance policies protect your finances in some way, but they aren't the source of a financially sound future.

These policies are simply risk-mitigation tools that can help you in case of crisis, and nothing more. However, even during the unfortunate times, you'll need extra help, and that's where your real long-term investments like ETFs, bonds, etc. will come in handy.

So, our advice is to buy insurance plans to cover the risk related to your life, health, etc. while you can invest your savings in financial instruments like stocks, bonds, etc. through ETFs and MFs to create wealth.

To conclude:

By now you must’ve understood that the day you start investing, you are going to be bombarded with advices, opinions, and half-truths. And the only thing that’s going to help you build your investment portfolio while minimizing risk is the right information.

Do not let such myths drag you down, or hamper your progress. So the next time you come across such myths, punch them out like a well-informed investor.

And if you have any doubts or need help, we would be happy to revert to your comment.

Just so you know, we are coming up with a brand new platform that will make investing fun and rewarding (more than it already is!). To stay updated, join our exclusive website: https://rudowealth.com/