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Created on 20.11.2018

Five reasons why you shouldn’t be afraid of investment

Lots of people who are new to financial investment find it unnerving. They are frightened of making mistakes, misunderstanding things, not selecting the right products or suffering losses. Our five tips will help you to overcome these hurdles and get more out of your money with confidence. Investment is often not as complex as you might think.

The stock exchange, shares, return, funds and securities – lots of people will have heard of these terms but may not understand exactly what they mean. This makes many potential investors feel uncertain, leading them to believe the risk of making a simple financial investment is much higher than it actually is. As a result,  they lack the confidence to invest and leave their money in savings accounts for fear of making a mistake. This means they miss out on the opportunity to generate higher returns. Shares and funds etc. are not just for experienced investors, but may also be a suitable option for you. 

Tip 1: Doing some research helps and is easy

You don’t have to be a professional to invest money wisely or spend hours, or even days, to find out more. Simply dedicating some time to exploring the field of financial investment will soon make you feel more confident about it. Simply getting to grips with the basic principles is enough, for example, by familiarizing yourself with and understanding the various investment instruments and the opportunities and risks they present and gaining an insight into why prices fluctuate or why diversification is so important to small and large investors alike. Get started with the basics! If you have a strong interest in a particular topic, you can explore it in greater depth.

The following articles will help you to get started. They do not require any basic knowledge and avoid complicated explanations:

Tip 2: Set goals

Why do I actually want to invest? Ask yourself this question and answer it honestly. Set yourself a specific, realistic target that you want to achieve with your financial investment and a time horizon. If you always keep this investment target in mind, you are less likely to feel uncertain. Your advisor would be pleased to assist you further. 

Tip 3: The long term is what counts: temporary fluctuations are quite normal

Investors shouldn’t and don’t need to check share prices on a daily basis. Long-term investors should focus on the big picture and not panic when short-term stock market corrections take place. Depending upon which strategy you pursue and the type of investment, your capital will be subject to major or minor fluctuations. However, short-term fluctuations do not determine the return you can expect at the end of the investment horizon. The only thing that really matters is the amount of money you obtain at the end of your investment. 

Tip 4: You don’t have to be rich – you can also start on a small scale

People who are anxious about losing a lot of money shouldn’t invest much either. Start with a  funds saving plan or small investments until you feel comfortable about investing larger amounts. The article “What is a funds saving plan actually?” explains how small amounts of money can be invested. Even with CHF 20 a month, you can accumulate assets over the long term.  

Tip 5: Advisors are there to help you

Take the opportunity to arrange a consultation and get some expert advice. You can register for a personal consultation with PostFinance by clicking on “Arrange an appointment”. Our advisors would be pleased to answer your questions about investment.

All kinds of questions can be asked, regardless of whether you want to know which funds are best suited to you, how long your investment horizon should be or whether you would essentially like to find out more about investment opportunities. Advisors from any bank will help you to draw up an investment strategy and to set out your goals. You don’t have to purchase funds immediately or sign up for a funds saving plan – take the time to arrange a consultation with your advisor to work out which investment strategy is the best for you.

Anxiety over financial investment is not a bad thing and many beginners experience exactly the same thing. Set some time aside to do some research, ask your advisor if there is anything you don’t understand and set yourself goals – this will allow you to get more from your money, even with small amounts and to slowly get to grips with investment. You’ll soon realize that financial investment is not that complicated at all. 

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