Few wealth-building strategies are as powerful as investing, yet many misconceptions hold people back from the potential benefits of investing their money. Most of these investment lies are presented as truths and popular beliefs, but listening to them can end up stopping you from reaching your financial objectives.
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10 May 2025
In this blog, we will identify and debunk seven of these lies to help you spot wealth-building strategies that are a smart choice for you. So, let’s get started.
Lie 1: Investing is Only for the Rich
Perhaps the most prevalent investment myth is that you need to be rich before you can start investing. The reality, however, is that investing has never been easier than today.
You can start with as low as Rs. 500 or Rs. 1,000 by opting for Systematic Investment Plans (SIPs) in mutual funds. Investment platforms and apps let new investors dip their toe in the pool of financial investment, letting them build an impactful portfolio over time. What matters is to be early and consistent, no matter how much money you have.
Lie 2: Savings Accounts are a Bad Investment
While savings accounts do indeed have lower interest rates in comparison to most other investments, overlooking them altogether is a mistake.
Savings accounts are very important for maintaining liquidity and financial security. They create a secure platform for unexpected emergencies.
Rather than dismissing them as a bad investment option, savings accounts should be viewed as tools for meeting shorter-term goals and emergencies. Meanwhile, you can channel anything above your emergency fund to more profitable tools such as mutual funds or stocks.
Lie 3: Stock Markets are High Risk
Most people are under the impression that investing in the stock market is risky, but in reality, it just requires patience. It is true you see short-term volatility, but the long-term trend indicates that markets tend to grow over time.
The key to reducing risk is diversifying by sector and asset class. Tools like SIPs make it easier for beginners to invest across various sectors and average out the volatility to make investing less risky.
Lie 4: You Have to Be an Expert to Invest
A common misunderstanding is that investing is too complex for most people to handle. However, the reality is that there are numerous investment choices for beginners.
They include funds that are professionally managed on your behalf, such as mutual funds. Another investment opportunity that you can add to your list of simple investments includes investing in index funds, where all an investor has to do is track their market indices, which requires minimal knowledge.
Lie 5: Real Estate in the Safest Investment Choice
Real estate investment has traditionally been seen as the safest investment, but it is not your only choice. There are mutual funds, fixed deposits, and even bonds that can provide you with a consistent return at lower risks as well as better liquidity.
The main problem with real estate is that it requires significant capital and is hard to liquidate in a short time. Plus, there will always be costs for maintenance and other paying taxes, which reduces profitability.
Lie 6: Investment is Only for Long-Term Goals
Long-term investing is important to create wealth. But you can also make investments for a short-term goal. If you need an investment that gives you returns within a couple of years, then fixed deposits or even recurring deposits and mutual funds can be a suitable option.
These investments are appropriate options for short-term goals like an upcoming wedding plan, home renovations, and vacations.
Lie 7: Timing the Market Is the Key to Success
The constant battle of predicting market highs and lows results in missed opportunities and bad decisions. Market timings are difficult to predict for even experienced investors.
A better way is to invest systematically through SIPs and have a long-term horizon. It helps you to gain from rupee cost averaging since, in this strategy, you buy more units whenever the prices are down and fewer when they are up.
How to Maintain the Right Mindset for Investment
One of the most effective lessons an investor can learn is to forget about these misconceptions and build their financial literacy with practice. First off, know that you can invest your money without needing a ton of capital or expert-level skills to get started on investment opportunities. What you require is consistency, patience, and a measured response.
Final Thoughts
Investing need not be difficult or high risk, but buying into these lies may prevent you from taking the first step toward investing your money. Whatever your goals — retirement, house, or saving for a child’s education — the right mix of savings and investments can lead to success. So, break free from these myths, take small steps, and be consistent to get the benefits of investments you can get.
