Busting the Myths Around Investing
Busting the Myths Around Investing
Traditionally, our elders have clung to the safety net of savings. “Why risk it?” they ask, while clutching their trusty piggy banks. Meanwhile, Millennials and Gen Zs are treating investing as the new normal. According to the latest data from the National Stock Exchange (NSE), 40% of young Indians under 30 are now participating in the stock market. The median age of investors, which sat at a respectable 38 years old in March 2018, dropped to a sprightly 32 by March 2024. [1]
Let us bust some of the myths that stop people from investing.
Myth 1: Saving will help beat inflation
Saving is important, but it may not be enough to grow wealth over time. With inflation in India around 3.16% as of April 2025, the value of your money is quietly shrinking each year. Without investing, your savings may lose purchasing power, making it harder to meet future financial goals. [2]
Myth 2: Investing in the Stock Market is too risky
People associate investing with stories of market crashes. Remember how the Global Financial Crisis in 2008 sent shockwaves through global markets? Suddenly, everyone was playing the role of a financial advisor, warning against the perils of investing. But guess what? The market recovered. In fact, it bounced back stronger than ever. [3]
Myth 3: Investing is Only for the Rich
Saying investing is only for the rich is like saying, I will eat biryani only if it is served in a silver bowl. You can start investing as little as ₹500 in mutual funds through Systematic Investment Plans (SIPs).
With SIPs, you can dip your toes into the world of investing even with a small amount. You can start small, and over time, even small contributions can lead to substantial growth due to the power of compounding.
Myth 4: You Can Time the Market
When it comes to investing, one of the most persistent myths is that you must "time the market”, that is buy low and sell high, to be successful. While this sounds logical, the reality is that accurately predicting the highs and lows of the market is incredibly difficult. In fact, it has been observed that trying to time the market can often lead to missed opportunities and subpar returns.
Did you know?
In the last 25 years, despite fluctuations, the stock market has generally trended upward. Since January 1, 1995, the Nifty 500 Total Returns Index (TRI) has delivered annualized returns of 12.6%. [4]
Investing consistently can yield results in the long term. The SIP route often smooths out market volatility, allowing you to invest without worry. [5]
Bottom Line
At the end of the day, it is not about choosing between saving and investing; it is about finding a balance. Savings may seem like they provide a safety net, but investments offer growth opportunities. With SIPs, anyone can start building wealth with as little as ₹500. Make small investments to enjoy compounding benefits. Your future self will thank you.
Disclaimer: The information contained in this article is for general purposes only and not an investment advice in any manner. Investors may seek professional advice before taking any investment-related decisions.
Mutual Fund investments are subject to market risks, read all scheme related documents carefully
SIP does not assure a profit or guarantee protection against loss in a declining market. The information herein is meant only for general reading purposes and the views being expressed only constitute opinions and therefore cannot be considered as guidelines, recommendations or as a professional guide for the investors. The article has been prepared on the basis of publicly available information, internally developed data and other sources believed to be reliable. The Sponsor, the Investment Manager, the Trustee or any of their directors, employees, affiliates or representatives (“entities & their affiliates”) do not assume any responsibility for, or warrant the accuracy, completeness, adequacy and reliability of such information. Investors are suggested to rely on their own analysis, interpretations & investigations. Investors are also suggested to seek independent professional advice in order to arrive at an informed investment decision. Entities & their affiliates including persons involved in the preparation or issuance of this article shall not be liable in any way for any direct, indirect, special, incidental, consequential, punitive or exemplary damages, including on account of lost profits arising from the information contained in this article. Investor alone shall be fully responsible for any decision taken on the basis of this article.
Source
[2] https://mospi.gov.in/sites/default/files/press_release/CPI_PR_13May25.pdf
[3] https://www.rbi.org.in/scripts/BS_PressReleaseDisplay.aspx?prid=22753