Myth #3 — You need large amounts of money in order to start investing.
You absolutely do not need huge lump sums of money to start investing. With a micro-investing app like Deciml, you can literally start investing with ₹5 — and immediately start earning interest on your investment. The trick to successful investments for young investors is investing regularly over a period of time — irrespective of the amount of your investment. At Deciml we are (obviously!) huge advocates for micro-investing, which means you invest a nominal amount daily or invest through your spare change to enjoy the benefits of compounding interest over time! This myth is a dangerous one because it can dissuade young investors from taking the plunge and starting their investment journey with small amounts. But, as soon as you start earning, you can invest through apps like Deciml and start diversifying your investments from the very start.
Myth #4 — The market can be timed.
Is it important to know whether you are in a Bear or Bull market? Yes. Is it important to know how much time your investments will take to mature? Absolutely. But can you pre-determine the exact right time to invest? Not so much! Even the most seasoned investors will tell you that predicting a good time to invest in any market is at best an abstract and volatile endeavor, and at worst a flat-out mistake. Of course, this does not mean that information about the market is a myth in its entirety — it simply means that nobody can confidently say that “this is a good time to invest and the current market scenario is completely risk-free”.
So, we bust the ‘market can be timed’ myth by saying this — you can adopt strategies that mitigate your investment risks or invest at a time when the market is relatively stable — but thinking that knowing the current market scenario means you can know how it will be tomorrow is a rookie mistake. You can find out more about this myth here.
Keeping these myths in mind can steer you away from making poor investment choices and can redirect you to making small and consistent investments as you earn more and more. Keep in mind that your financial freedom will eventually depend on whether or not your money is making more money for you — so invest now — it is the smart choice.