Over longer periods of time (five years or more), investments such as stocks, shares and funds, have the potential to give you higher returns compared to cash savings. But the value of investments can fall as well as rise. Eligibility criteria, fees and charges apply.

Research shows that a consistent set of myths underpins Britons’ reluctance to invest – and means most of us are missing out. Here are 6 of the most enduring myths about investing… and the truth behind them.

In 2025, research by YouGov revealed a set of persistent myths that put 2/3 of Britons off investing. The Result is we might be making less money than we potentially could.

So what are those myths? And what’s the underlying reality? NatWest’s investment specialists Nigel Pullen and Monica Wong set the record straight.   

Reality: You certainly don’t need lots of money to invest. You can start small and build your investment over time.

“In fact, it’s helpful to look at what investment could look like to you in two different ways,” says Nigel Pullen, Head of Advice for Premier Financial Planning.

“One way might be just small amounts, on a regular basis. That’s what we’re all doing with pensions. We might invest a small sum monthly, which enables the investment managers to drip feed this into the market, with the aim to capture the growth opportunities over the longer term, as part of a larger fund.

“But it doesn’t have to mean a pension – you can do that with any discipline of saving on a monthly basis – for example, putting money into an ISA. Let’s say you invest £100 a month, by the end of the year that’s £1,200, invested – and it could end up being more, depending on what’s happening to the market.

“What we’ve found on NatWest Invest is that our customers who are investing regularly, then go on to invest a lot more. So it’s a stepping stone. Their confidence rises, and after that they think, oh – I get this now, I understand how it works, so I’ll invest more for the longer term. We see that happening. And you can start from as little as £50. So you don’t have to be extremely rich to start investing.”

Even better, the NatWest Premier team can help you to identify whether the best solution for you might be ISAs, or a more sophisticated investment platform.

As Monique Wong, NatWest’s Head of Portfolio Management, says, “Financial markets have become increasingly commoditised and socialised. Investors can now buy low-cost funds in small amounts, making investing accessible to almost everyone.”

As these investment solutions vary widely, so do the expectations around length of time, and return. It all starts with a conversation. 

Reality: The quick answer is, not necessarily. The longer one involves thinking about risk, and what it really means.

Calculating the changing ratio of risk-to-reward is fundamental to all our daily lives. It’s in everything from getting up in the morning to the food we eat, and the relationships we choose, to the professional decisions we make. And therefore, that it is something we can all negotiate and control with some degree of confidence.

“In terms of investment, risk is also something we have a vast army of investment managers, risk specialists and economists, all calculating and negotiating risk and return as their core job,” says Nigel Pullen.

“And they work with the sole focus of building wealth for our clients and investors.  So when they think something is going to change in value, they’re not afraid to swap it for something else, or even to hold cash, and wait for the right opportunity. That’s their job: to manage risk.”

“But still, some people might want to take a different approach to risk as it suits them. For example, a 60 year old will probably have a different investment horizon to a 25 year old, and that might inform their stance on what risk profile is right for them. So to mitigate and reduce risk there, we give you the choice of what is your risk appetite.”

Conversations around your personal circumstances, investment horizons and appetite for risk and return mean investment managers can tailor a huge number of factors – among them sustainability profile, market, potential return, and risk – to you.   

Fundamentally, it’s important to note that investments can go down as well as up. That said, over the long-term, markets have tended to rise steadily.

A sound principle for investing is to spread investments around. If a certain amount is placed into a higher-return, higher-risk product, then it makes sense to spread the body of your investment capital into lower-risk areas.

Investing in managed funds can also help reduce the chance of losing significantly if one single investment doesn’t perform well – largely for the same reasons.  

This is known as diversification. Diversification is built into NatWest’s expertly managed NatWest Invest funds.

Reality: Once you engage with us, then you are engaging a that network of professionals, whose role is to do this for you.

 “You can make it full time if you want to,” says Nigel. “Or, you can leave it to our team of experts, and adopt a more hands-off approach, perhaps just checking in to see fluctuations in your holding.”

After all, a key benefit of investing through a trusted and established institution such as NatWest is you have access to a huge and dedicated network of highly experienced and fully equipped investment managers.

Investment managers at Coutts make changes to the NatWest Invest funds based on thorough analysis of market moves, for example. And through NatWest Invest, you can check in whenever you like to see how your investment portfolio is performing.

As Nigel points out: “That is the full-time role of this network of expertise, and it’s what they focus on – with all the data on markets and movements, and technology, as well as experience in growing investments on behalf of our customers.” 

Reality: The long and short of it is, this need not be true, says Nigel Pullen. “There is generally no fixed period that you need to invest in a Stocks and Shares ISA or General Investment Account. Similarly, for tailored investments, you will often have the option to sell off, and convert your investments back into cash at your disposal, at any time.

That said, your ambition should be to invest for at least five years. You could take your money out at any time. If you’re working with one of our wealth team, they will be happy to advise you on potential timelines. It's important to bear in mind that you may get back less than you invested, especially if you withdraw cash in the early years of an investment."

“You can sell your investments at any time you like,” confirms Nigel. “We’d suggest to you that you keep some money ready so that you’re not in a position of having to sell, but if you do need to, you can always access your money in days.”  We’ll move the money back into your online banking account within a few days.

Reality: “Well it can be expensive,” says Nigel, “If you’re doing everything yourself, and paying for advice! But the point is, it doesn’t have to be. If you’re looking for ready-made funds – which are one of the easiest ways to access the market – fees are very low.

In the immediate term – say, at the outset – investments do incur fees. However, the goal is for the yield on those investments to make back more than that initial cost, each year. 

Initial investment fees vary by provider – checking them, and mapping them against indicative performance in those funds should give you an idea of potential return to set against that cost.

While many online platforms are inexpensive, “NatWest is currently one of the lowest in the market for fees,” says Pullen.

NatWest Invest fees and charges are currently no more than 0.55% of the amount you have invested. That means if you invest £1,000 a year, it will cost £5.50 a year in fees. 

Reality: There are some key differences.

For one, savings have the advantage of being dependable, predictable and easy to access. On the flipside, savings may not offer the same opportunities to grow your money that investments seek to provide. For instance, when inflation begins to creep up, it may eat into savings at a rate faster than their interest accrues. “This is perhaps the crucial difference between saving and investing,” says Nigel Pullen.  

While protection from inflation, along with growth of your funds, is key to investing’s appeal, it’s always worth thinking about a balance – between any potential advantages that can come from investment, and the ease of access and movement that comes with savings.