5 Things They Tell You about Investing that’s Wrong

1. You need to be an expert to manage funds and carry out due diligence as it takes up a lot of time. With the help of the internet and technology, this is not true. There are online tools in which you can utilise. Trading platforms online will do a lot of the work for you and will be even more accurate than a fund manager a year back.
2. You cannot win over the market because the market is efficient enough to price the stock at the value of the companies. There was a recent news flash of the GameStop story on Reddit and as this shows, you can bet the market for long periods of time with the right research and understanding.3. Minimise the risk of diversification and long holding – you do not need to diversify money into over 50 stocks or an index fund if you buy business stocks you understand, buying when fund managers are scared of change and selling when they are greedy.4. Dollar-cost averaging, This is minimising the risk by making the average cost of the stock smaller as you put in the same amount every month and hold. It will protect you however it will not in the down market it is the same as buying and holding.5. Real estate is better than a business to start investing in. This is not strictly the case, 30-year growth for real estate is 4% but 15% is the rate of return for a potential market investor.