Too complicated, reserved for the wealthy or experts… There are many preconceived ideas about investing! While it’s true that some of these prejudices have some truth in them, investing is increasingly accessible today, regardless of your level of knowledge or income. Yes, you no longer need to have Croesus’s fortune or be a math genius to benefit from the best investments.
1. Investing in the stock market is complicated
You hear about the stock market regularly… and yet, how it works seems a little opaque. Don’t panic! Even if the topics related to investing can seem vague, you don’t need to be an expert to invest well. You can already start by implementing a few simple best practices.
And if, despite everything, you feel a little lost, don’t hesitate to get help! Intuitive and easy-to-use platforms, like Mon Petit Placement, simplify your investment process by giving you access to the best products and offering you personalized support.
It’s entirely possible to manage your investment portfolio well and make your savings grow without having a master’s degree in finance!
2. Investing is reserved for wealthy individuals
Getting support is fine, but how much does it cost? For a long time, the best financial management products and services were reserved for the wealthy.
What has changed since then?
Thanks to the possibilities offered by digital technology, new business models are emerging, particularly those of fintechs, which are democratizing financial services. Today, you can benefit from comprehensive support and access to high-end products, starting from 300 euros .
With Mon Petit Placement , you can invest according to your needs and goals, without commitment, and without entry or exit fees. The icing on the cake: we only get paid if your investment performs!
3. You can’t invest your values
It is often thought that investing and finance in general are not compatible with sustainable development or other social values.
However, investing can have a real impact on society, provided you place your savings in the right place!
Why invest responsibly?
Personal values and a sense of responsibility are priorities for many of us today. To meet this need, certain responsible investment portfolios have been created.
These portfolios allow you to invest in companies or structures that take concrete action for causes that are close to your heart: climate, health, equality, employment, technology, solidarity, or even the French economic recovery, for example.
And what about profitability in all this?
Good news: this type of investment yields no less than traditional investments. In other words, investing in line with your values doesn’t mean sacrificing profitability ! You can thus combine social or environmental impact with financial performance.
4. You have to like risk to invest
In investing, return and risk go hand in hand.d This rule is used to determine your investment choices, based on your investor profile and objectives
Example
If you have a long investment horizon and are not afraid of seeing your investment fluctuate, you can aim for riskier investments.
Conversely, if your horizon is shorter or you are less comfortable with risk, there are portfolios suitable for you.
The essentials:
There’s an investment portfolio for every profile, depending on your risk-taking ability and willingness. You can invest with minimal risk (and stress) while still achieving attractive returns.
5. The invested sums are blocked
Traditionally, once you’ve invested, it’s difficult, if not impossible, to go back. For example, if you invest in your primary residence, selling it immediately if you change your mind isn’t always easy. The advantage of financial investment is that you can withdraw your money whenever you want!
But one golden rule: give your investment time to grow.
Even if your money is not locked in, it is advisable to give your investment time to generate attractive returns.
The statistics speak for themselves: those who attempt to time the market —that is, withdraw or move their money based on price fluctuations—generally perform worse than those who let their investments fluctuate. (Source: Journal of Financial Planning)
There are two main reasons for this phenomenon:
- It is very difficult to predict market developments with certainty.
- Decisions made in the heat of emotion or haste are often costly mistakes.
Moral: The best solution is not to complicate things unnecessarily and to stick to your initial plan.
The tax advantage of life insurance
In addition to its flexibility, life insurance, which is a tax-advantaged investment envelope, offers a tax reduction on the taxation of your financial income after 8 years of opening.
However, this doesn’t mean your money is locked in for 8 years, contrary to popular belief.
6. Investing is not a priority when you are young
We don’t often think about starting to invest at 18, or even at 25 or 30. We imagine that you need a substantial amount of money, knowledge, experience, and a lot of time… But these are preconceived ideas: it is entirely possible to invest at a young age, and it is even highly recommended
Why invest early?
It’s very simple
- A long investment horizon: The earlier you invest, the longer your investment horizon will be. This allows you to target riskier—and potentially more rewarding—investments while leveraging the power of compound interes , which increases your profitability over time.
- Few major expenses : At a young age, you often have fewer major expenses. Even if your income is modest, investing small amounts regularly can already lay the foundation for a solid capital for the future.
7. Financial investment is a man’s business
Another common stereotype about financial investors is that they’re necessarily men. And while this is still often true, it’s not an immutable rule. For example, 8 out of 10 women report having less knowledge about financial investments than their spouse. But rest assured, this has nothing to do with a natural predisposition in men, but rather with historical and cultural factors .
In average earn nearly 1% more than men on their investments, according to a study conducted by the Haas School of Business at the University of California, Berkeley.
The key: questioning preconceived ideas
In investing, as in many other areas, it is always good to question accepted beliefs, because they are often based on prejudices.
Investing is more accessible than ever.
With the emergence of new investment opportunities, boosting your savings has never been easier. If yo,u tyou want to grow your savings, Mon Petit Placement is here to help.
