Invest or not invest? Are these six excuses stopping you from investing right? (2024)

The earlier you start investing, the more time your money will get to compound and grow. So, the catch here is to start early. However, people have various excuses and keep dilly-dallying their investment journey. Once, an individual gets into this money business, it’s very important to grow their investments in line with the rise in their income

Livemint spoke to personal finance experts to understand some of the common excuses people make to not invest at the right time and in the right avenue.

1)Investment goals to aim for

The most significant deterrent for delaying or halting the investment journey is not defining the goal, timeline, and required corpus.

“For example, many young investors cannot visualize this retirement in their 20s and 30s. They start retirement planning in their mid-40s when the goal is in a clear line of sight and demands urgency. Thus, they miss out on crucial years to build the desired corpus," said Ajinkya Kulkarni, Co-Founder and CEO, of Wint Wealth.

Finding the right balance between spending today or saving for tomorrow is difficult without a goal.

Also Read: Five best retirement investment options for people in their 20s

2) Fear of losing money

The majority of people fear losing their money in the market. According to Arun Singh Tanwar, Founder and CEO, of Get Together Finance (GTF), nothing is going to last for a long time, especially the downfall in the market. People need to learn patience before stepping into the market.

3) Lack of financial literacy

When it comes to investing, the majority of people in India believe in others rather than themselves. People don’t want to spend time learning and researching, they rely on the calls of others to make their moves. “When these calls go wrong, people suddenly get off the market," said Arun Singh Tanwar.

It is important for people to prioritize the basic learnings of the stock market for better saving and investment goals, added Arun.

4) Not having enough capital

People believe they need a hefty amount of money to start investing in the stock market.

5) Equities are risky

Most people believe one can make quick gains in the stock market. “They invest to take advantage of the short-term opportunities which mostly leads to losses," said Tanwar.

6) What fee do financial planners charge?

If you are a new investor and don’t have adequate resources, it gets all the more necessary for you to have a robust financial plan to optimise your resources.

According to the CEO of Wint Wealth, the best way to overcome the challenge is to work with a fee-only registered investment advisor to define your financial goals, necessary monthly investment, and the choice of investment instruments.

Financial goals also evolve from time to time. Thus, an investor should review these goals every 12-18 months and rebalance the portfolio, he added.