Note: It was announced in November 2023 that MoneyOwl will be acquired by Temasek Trust to serve communities under a re-purposed model, and will move away from direct sale of financial products. The article is retained with original information relevant as at the date of the article only, and any mention of products or promotions is retained for reference purposes only. 

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Preserving and growing the value of your hard-earned savings starts with taking the first step into the world of investing. While the high interest rate environment has made deposit accounts seem attractive, the rates are generally not able to outpace inflation. While such deposit accounts are a good way to store your emergency cash, anything beyond 6 to 12 months of your expenses should be invested in the markets so that you can unlock the potential for long-term financial growth.  

Whether you’re a fresh graduate, young parent, or someone looking to secure a comfortable retirement, investing in the markets can help you achieve your life goals and milestones. In this article, we will delve into the 5 common fears of investing and provide some ways how you can overcome these fears and embark on your investment journey with confidence and knowledge.  

Fear of losing money

Many people are afraid to invest because they are afraid of losing their hard-earned money. However, avoiding investing altogether can be just as risky, as it means missing out on potential returns. One way to overcome this fear is to start small and invest only a small portion of your savings. This can help you get comfortable with investing and gradually increase your exposure over time. You can read more about dollar cost averaging here where you can even out the market volatility while ensuring you do not miss out on market returns.  

Fear of market volatility

The stock market can be unpredictable, and many people are afraid of investing because they are afraid of losing money during a market downturn. However, it’s important to remember that market downturns are often temporary, and over the long-term, the market tends to go up.  

Besides the dollar cost averaging method mentioned earlier, another way to overcome this fear is to invest in a broadly diversified portfolio that includes both global stocks and bonds. This can reduce your exposure to localised market volatility while still allowing you to benefit from potential market gains. This is a key pillar of MoneyOwl’s investment solutions – our investment portfolios are globally diversified to minimise the impact of any single investment on the entire portfolio, thus reducing volatility and potentially providing a smoother investment experience. 

Fear of not knowing enough

Investing can be intimidating, especially if you feel like you don’t know enough about the markets or investing in general. However, there are many resources available to help you learn more, including online courses, books, and articles. By taking the time to educate yourself, you can become more confident in your investment decisions and make more informed choices. You can start with MoneyOwl’s webpage or follow us on our social channels, where we have many useful and insightful articles and tips to help you get started on your investing journey.  

Fear of making the wrong decision

Making investment decisions can be stressful, especially if you’re worried about making a mistake. However, it’s important to remember that there is no one “right” investment strategy that works for everyone. The key is to focus on your own goals and risk tolerance, and to make investment decisions that align with those factors. One way to overcome this fear is to work with a financial advisor who can help guide you through the decision-making process and provide unbiased advice. MoneyOwl’s fully-salaried and non-commissioned Client Advisers can help you complete such a risk assessment and guide you towards choosing the most suitable investment option based on your life goals.  

Fear of missing out

Many people are afraid of missing out on potential investment gains, which can lead them to make impulsive investment decisions. However, it’s important to remember that investing is a long-term strategy, and it’s more important to focus on your own goals and risk tolerance than to try to chase short-term gains. One way to overcome this fear is to stick to a disciplined investment strategy and avoid making impulsive decisions based on market fluctuations or news headlines. MoneyOwl’s Client Advisers are on-hand to provide risk coaching and keep you informed and engaged during times of market turbulence or periods of uncertainty so that you can stay focused on your investment strategy. 

In conclusion, when you bravely venture into the world of investing, you can unlock a realm of opportunities to maximise your wealth potential and secure a brighter financial future for yourself and your loved ones. Whether you aspire to build a comfortable retirement nest egg, fund your dream home, or fulfil your children’s educational aspirations, investing in the markets serves as a strategic approach to achieving these milestones. 

MoneyOwl is ready to help you get started on this journey. When you invest with MoneyOwl, you benefit from holistic financial planning, low fees, evidence-based investing, diversified portfolios, professional advice, and a user-friendly digital platform. Furthermore, you can invest your cash, SRS and CPF savings and monitor them within a single platform.

Yours Sincerely,

Daphne Lye
Lead, Solutions
MoneyOwl

Disclaimer:
While every reasonable care is taken to ensure the accuracy of information provided, no responsibility can be accepted for any loss or inconvenience caused by any error or omission. The information and opinions expressed herein are made in good faith and are based on sources believed to be reliable but no representation or warranty, express or implied, is made as to their accuracy, completeness or correctness. All investments carry risk. Expressions of opinions or estimates should neither be relied upon nor used in any way as indication of the future performance of any financial products, as prices of assets and currencies may go down as well as up and past performance should not be taken as indication of future performance. The author and publisher shall have no liability for any loss or expense whatsoever relating to investment decisions made by the reader.