If you want to be successful in investing, one of the things you will need to do is to differentiate between facts and myths. There are many misunderstandings and misinformation in the investment world and this has led to many losing their hard earned cash to fraudulent investment opportunities or avoiding investing all together.

In this article, we will look at some of the common investment myths and see where the truth is.

1. I Do Not Have Enough Money to Invest

A common myth about investing is that you need to have a lot of money to start investing. This is definitely not true. The amount needed to get started in investing in most of the investment products is low thus allowing anyone to be an investor. Below are the amounts needed for some of the investment products;

• Shares (NSE Stocks) – As low as Ksh 500.00
• Mutual Funds (Unit Trusts) – Between Ksh 500.00 and 1,000.00 depending on the fund manager
• Treasury Bond – Ksh 3,000.00

2. Investment Success is About a Big Break

Many individuals in Kenya believe that to make it financially, they need to get a big break or ‘deal’. Many will keep hoping and trying to get a big contract, a big job opportunity, a lottery win or some windfall gain.

However, success in investing has more to do with starting small and being consistent than getting a “breakthrough”. If you gain an understanding of the investment world and develop a habit of investing wisely, you will keep growing your wealth in spite of your income levels or opportunities available.

3. The Higher the Risk, the Higher the Return

Many people have lost a lot of their hard earned money because of getting into get-rich-quick-schemes that promise much but turn out to be fraudulent or fall short of the promise. The lure of quick gains and exorbitant profiting has deceived many to lose their funds.

However, to invest successfully, it is advisable to invest in time tested products that have a sure return. Even when investing in more risky products, ensure that you have done a thorough check and only invest when you fully understand how the investment product works.

4. To Succeed in Investing, You Must be a Miser

Another common investment myth is that to be a successful investor, you must forego all the fun and live a poor boring life so as to save up to become rich. However, this is not true. A success investment plan ensures that you enjoy your wealth both today and tomorrow. The investment plan must include short term, midterm and long term investment goals that will ensure that you continually enjoy the fruits of your wealth.

5. Investing is Complicated and For Experts or Insiders

Over the years, investment advisors and investment reports in the news have used hard language that has made investing look complicated and only for experts and insiders. But investing is easy to understand and information is easily available.

Rubiani Wealth Management seeks to demystify investing and give investment knowledge to as many people as possible in an easy to understand way.

6. Investing is Risky – My Money is Safer in the Bank

Many people shy away from investing because they perceive that investing is risky and that they will lose their funds. However, this is not true. There are many investment products that ensure that you do not lose the funds you have invested. Even for products that do not protect your invested funds, there are ways provided so as to reduce the risk while maximizing your returns. There you have it. We hope this will encourage you get get started and keep progressing in your investment journey.