Investment myths busted by our Coutts expert

Reality: Investing always involves risks – but there are ways to manage it.

When thinking about investing, it’s natural to worry about losing money. Investing gives your money the opportunity to outpace rising prices over time despite not necessarily climbing in a straight line.

Keeping money in cash can feel reassuring and plays an important role for short-term needs. But these savings might not keep up with inflation which could affect what that money can buy which can also be a risk.

Ways to manage the worries of investment going up and down for example could be to invest in funds. Money is spread across a range of companies, industries and regions, so it’s not relying on the success of any single investment. Combined with a long-term approach, this might help make investing feel more manageable while giving your money the opportunity to outpace rising prices.

Reality: Simplicity could help you achieve what you need.

Investing doesn't have to be complicated. Many people start with funds that spread investments across different companies, industries and regions, helping avoid relying too heavily on any single investment. This is to try and make it easier to get started and stay invested over time.

Reality: Investing doesn’t need to become a second job.

Checking your investments daily often leads to emotional decisions. Successful investors typically:

• Set a plan
• Stick to it
• Review occasionally (not constantly)

Reality: People start investing at different stages of life.

Putting off investing because you think you’ve missed your chance or that you’ll do it later in life could impact your money’s potential. Starting now might be far better than waiting any longer.

Investing can be relevant whether you're starting your career, growing a family or planning for retirement. Even a few extra years invested could make a meaningful difference because your money has more time to grow.

Reality: Investing is usually about long-term growth, not quick wins.

It's natural to focus on what markets are doing today, this week or this month. But investing is typically most effective when viewed over years rather than days.

Markets can fall as well as rise in the short term, which is a normal part of investing. Being patient with your investments rather than making quick decisions could mean your money has more time to grow and recover from temporary setbacks.