Don't Let the 4 Myths Stop You From Investing

Published on
March 11, 2025

Investing often feels intimidating, thanks to long-standing myths that make it seem complex, risky, or out of reach. But the truth? These myths are just misconceptions that stop many from taking the first step. Let’s break them down and see why they don’t hold up.

1. I Need a Lot of Money to Invest

How This Myth Started

For the longest time, investing was seen as something only the wealthy could do. Picture sleek private wealth managers and mutual fund agents offering investment product, but they wouldn't ask to start investing with just RM100 - that would be a waste of their time. Hence why we have the perception that investing requires a lot of money or suitable only for the high-net worth individuals.

Why It’s Not True

Times have changed, and the role of investment manager has been automated with technology. This allows for the same service (financial advise and portfolio management) to be more accessible and cater to the wider retail investors.  Robo advisor companies like Wahed offers low investment minimum because it can fractionalise your holding and at the same time bringing liquidity as they serve more investors.No more intimidating meetings with agents slapping high fees on your investment.

What is Fractional Investment?
Securities are traded based on the minimum lot or its value. Say if the value of the security is RM1,000 per unit, that means you would need to invest at least that amount to hold a full unit. But with fractional investing, you can invest the amount you can afford and own a fraction of the full unit. Like in Wahed, when you invest the minimum of RM100, you'll get a 0.1% of this security as part of your portfolio.

What You Can Do Instead

Start small, but start now. Investing isn’t about how much you begin with, but how consistently you do it. Let compounding do the heavy lifting over time and you'll be amazed how the amount you have is never a barrier to investing and achieving your goals.

2. Investing Is Too Risky for Me

How This Myth Started

Negative stories about investment scams and failed ventures spread faster than success stories. Human psychology is naturally biased toward remembering the bad or over emphasizing on the worst. Much like car accidents would make the headlines  the news over safe drives, but that doesn’t stop you from driving, doesn't it? The same could be true for investing - the horrors of getting scammed or loss of money are the stories we often hear even though it is the exception and not the rule.

Why It’s Not True

Risk is part of investing, but it can be managed. Spreading investments across different assets (diversification), staying invested long-term, and avoiding emotional decisions are some of the steps one can reduce risks of investing significantly.

What You Can Do Instead

Investing in index-tracking instruments such as ETFs and having it part of a diversified portfolio takes the guesswork out of investing. Understand your risk appetite, and select the portfolio that fits your needs.

3. I Don’t Have Time to Invest

How This Myth Started

Many people assume investing means watching stock charts all day. There's a misconception that investing = trading. A trader invests actively by trading stocks, by buying low and selling high - usually managing a period of within hours, days or weeks. That's how most people picture an 'investor' doing all the stressful work and eating up all the time. With work, family, and responsibilities, who has time for that?

Why It’s Not True

Actually, one of the most commonly practiced methods of investing is passive and long term. Passive investment like the index tracking instrument such as ETFs follows the market trend rather than the volatility of a single stock. Since most people don't have the time but the same goal (that is to make returns and more money), thankfully sticking to the long term goal (beyond months and years) have proven to be a sustainable and effective way to grow your wealth.

Modern investing is hands-free. Malaysians spend an average of 8 hours daily on their phones. If you have time to scroll social media, you have time to invest—because setting up a recurring investment takes just minutes. After that, your investments run on autopilot

What You Can Do Instead

Practice what most successful investors do, spend the one time you need to:

  1. Set up your goals (could be less than 3 minutes if you try our goal calculator here)
  2. Open an investment account (3 minutes with Wahed)
  3. Set automatic recurring investment (2 minutes) to take the advantage on the power of compounding

That's a total of less than 10 minutes spent on investing which your future self will thank you for. Now that you're invested, you can focus on the things that matters in your life - and we hope its not on your phone ;)

4. I’m Too Young to Invest

How This Myth Started

Many believe investing is something you do when you have a stable career and lots of savings - which is another common logical fallacy that ties in your ability to invest comes after you have the money. Because of this, most people will think "I'll do it later" or "when I have enough money" which delays one's ability to grow wealth.

Why It’s Not True

The greatest advantage in investing isn’t just money—it’s time. The earlier you start, the more compounding works in your favor. This is because the longer your investment horizon (time to get to your financial goal), the more likely that you'll be able to generate returns on your returns.

What You Can Do Instead

Set a financial goal with Wahed — whether it's for a laptop, a holiday, or a down payment on a house. Small, consistent investments now will set you up for bigger rewards later. Try out this calculator to see the impact of compounding where you can reach the target of RM 1 million not with RM 2,777 per month, but just with RM 286.

Click here to use calculator.

Start Now, Start Small, Stay Consistent

The biggest mistake isn’t losing money — it’s not starting at all. These  myths shouldn't be discouraging you  from taking that first step to investing. . The truth is the sooner you start, the easier it gets to reach your goals.

Start with Wahed now.

Risk Warning: Equity investments are not readily realisable and involve risks, including loss of capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. Investments of this type are only for investors who understand these risks. You will only be able to invest in the company once you have met our conditions for becoming a registered member.

Please visit www.wahed.com/uk/ventures/risk for our full risk warning.

Risk Warning: As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.

Please visit www.wahed.com for our full terms and conditions

Maydan Capital Limited, trading as WahedX, is registered in England and Wales (Company No. 13451691), registered office: 87-89 Baker Street, London, W1U 6RJ, UK. Maydan Capital Ltd (FRN: 963613) is an appointed representative of Wahed Invest Ltd (FRN: 833225), an authorised and regulated firm by the Financial Conduct Authority.Wahed Invest Ltd. is registered in England and Wales (Company No. 10829012), registered office: 87-89 Baker Street, London, W1U 6RJ, UK and is authorised and regulated by the Financial Conduct Authority: FRN 833225.

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As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.

Wahed Invest LLC (Wahed) is a US Securities and Exchange Commission (SEC) registered investment advisor. Wahed Invest provides brokerage services to its clients through its brokerage partner Apex Clearing Corporation, a member of NYSE - FINRA - SIPC and regulated by the SEC and the Commodity Futures Trading Commission. Registration does not imply a certain level of skill or training. Wahed does not intend to offer or solicit anyone to buy or sell securities in jurisdictions where Wahed is not registered or a region where an investment practice like this would be contrary to the laws or regulations. Any returns generated in the past do not guarantee future returns. All securities involve some risk and may result in loss. Any performance displayed in the advertisements or graphics on this site are for illustrative performances only.

Disclaimer: Wahed Technologies Sdn Bhd ("Wahed") is a Digital Investment Manager (DIM) licensee issued by Securities Commission Malaysia (eCMSL/ A0359/2019). It is part of Wahed Inc. Wahed is authorized to conduct a fund management business that incorporates innovative technologies into automated portfolio management services offered to clients under a license issued pursuant to Schedule 2 of the Capital Markets Services Act 2007. All investments involve risks, including the possibility of losing the money you invest, and the track record does not guarantee future performance. The history of returns, expected returns, and probability projections is provided for informational and illustrative purposes, and may not reflect actual future performance. Wahed is not responsible for liability for your trading and investment decisions. It should not be assumed that the methods, techniques, or indicators presented in this product will be profitable, or will not result in losses. The previous results of any trading system published by Wahed, through the Website or otherwise, do not indicate future returns by that system, and do not indicate future returns that will be realized by you.

Wahed Invest Limited is regulated by ADGM’s Financial Services Regulatory Authority (“FSRA”) as an Islamic Financial Business with Financial Services Permission for Shari’a Compliant Regulated Activities of Managing Assets and Arranging Custody [Financial Permission No. 220065]. Our ADGM Registered No. is 000004971. Wahed Invest Limited utilises Abu Dhabi Commercial Bank as its banking partner/custodian

Wahed assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. Any strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. Furthermore, the information presented may not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance.

There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services and should seek advice from an independent advisor before acting on any information presented. Any links to third-party websites are provided strictly as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites nor do we endorse the content and information contained on those sites. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the third-party websites.

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