Banglore, India, June 1, 2023 – Freo Save, a leading digital financial services company, published an informative blog post to provide clarification on several prevalent investment myths that frequently lead investors astray. By addressing these misconceptions in detail, Freo Save aims to empower investors with the knowledge to develop prudent strategies tailored to their needs and risk tolerance.
Following are the seven myths about investment:
Investing is only for the rich. Freo Save debunked this myth, explaining that there are many investment options available for small amounts. Investing is about starting early and acting consistently, and the key to building wealth over time is developing a habit of saving and investing regularly, no matter the amount. Budget-friendly options like a systematic investment plan (SIP) or a recurring deposit (RD) begin from ₹500 per month, so one doesn’t need substantial lump sums to start investing. Over months and years at higher returns, small, frequent investments can accumulate significant wealth.
Past performance guarantees future returns. The company clarified that while understanding historical trends is important, past performance does not guarantee future returns, especially given current market volatility. Market conditions change, and reliance on past trends alone can lead to poor decisions, the article cautioned. Instead, investors must diligently consider current events and risks as well.
Stocks are the only investment option. Freo Save highlighted several asset classes beyond just equities, including debt securities like bonds, gold, and other commodities, forex, and real estate investment trusts or REITs. A complete investment portfolio contains assets that meet specific goals. Diversifying your investments suitably across options is essential to managing risks where each asset has distinct characteristics and serves different needs. The blog explained that investors should evaluate choices across classes to meet their diverse risk appetites and goals.
Life insurance is an investment. In the blog post, Freo Save clearly distinguished between insurance and clarified that insurance policies serve as risk mitigation tools, not investment products. They provide financial protection, not high returns. The report mentioned term life insurance as an example, which offers financial coverage for dependents at a low cost while investing separately focuses on building wealth. Conflating insurance and investment typically often leads to lackluster outcomes for both.
Higher rewards necessarily mean higher risks. The article said experienced investors calibrate risk levels to match their financial objectives, explore various options to optimize returns, and make prudent decisions based on a careful analysis of factors like the type of funds and their risks. Higher returns do not always equate to proportionally higher risks—the key is addressing risks and optimizing risk vs. return.
One must explore options, consider strategies and combinations, assess factors like funds and risks, and make informed decisions to achieve the best risk/return balance. With research and guidance, investors can find opportunities to earn solid returns at manageable risk levels
Market timing leads to success. Freo Save warned against chasing the highest-priced stocks or trying to time the market. Instead, take a long-term, disciplined approach. Develop an investment strategy based on goals and risk tolerance. Stay invested and avoid emotional decisions. Success comes from consistency, not timing.
Investment success requires expert knowledge. Freo Save explained how anyone could become a successful investor by starting early, acting consistently, and making informed decisions. With sustained experience over time, novice investors can gain valuable insights to determine the approaches best suited to their needs. Budding investors should develop a sound strategy based on their objectives and risk tolerance, gain practical experience over time and continue learning to make the best choices for their needs.
By debunking these pervasive myths, Freo Save aims to provide the clarity and tools for investors to achieve their financial and life goals.
A company spokesperson remarked, “There are many myths that can derail investors from a sound strategy. It is vital to avoid misunderstandings and instead concentrate on developing an approach based on your needs and risk appetite.”
“Don’t fall into the trap of chasing the highest-priced stocks or trying to time the market,” The spokesperson further added. “Instead, take a long-term approach and stay disciplined. If you avoid these investment myths, you’ll be well on your way to financial success and wealth creation for the future.”
About Freo Save
Freo Save is a renowned digital financial services company offering up to 7% interest on savings and additional benefits like insurance on balances, secure banking, and more. Freo Save provides customers with the knowledge and tools to make optimal financial decisions through spending, borrowing, investing, and saving. For more information, please visit https://freosave.com/.
Financial services company Freo Save published a blog post where they dismissed seven common investment misconceptions in an effort to help investors develop practical strategies suited to their needs and risk tolerance.
Contact:
Company: Freo Save
Contact Person: Naina rajgopalan
Email: naina@freosave.com
Website: https://freosave.com/
Address: Banglore, India
