I Don’t Have Enough Money
Many people agree that investment is necessary, but somehow they haven’t started investing. One of the common excuses is because they think don’t save enough, and don’t have enough money to invest.
But this isn’t a good excuse, because your first investment does not necessarily require a large sum of money. In fact, you can start investing in unit trusts with as low as $100 per month.
I Can Make Better Investments Than The Professionals
Another excuse why people delay investing, is because they believe they can make better investment decisions than the professionals in the industry. They often think that the potential returns of unit trusts, which consist of a diversified basket of companies, are too low for them. Why not just buy the stocks of a few good companies to get higher potential returns instead?
While that investment strategy isn’t wrong, it requires good stock picking skills and constant monitoring. Unfortunately, most retail investors fall short in this area. This is because after a hard day’s work, most people just want to relax and spend time with their loved ones. Analyzing balance sheets and candlestick charts is rarely prioritized. As a result, they keep delaying investing because they can’t afford the time to analyze the stocks.
In contrast, analysts and fund managers study financial reports to identify companies which can perform well in the long-term. They also stay updated about the latest market news, track the movement of the stock market every day, and formulate risk-hedging strategies to deal with volatile price fluctuations. While some may argue that unit trusts have high management fees, it can be well-worth it, considering the time and effort you save by having the experts manage your investment portfolio for you.
If you need help to get started in unit trusts, talk to an experienced financial planner today.
