Basics     Money Myths

“Investing takes a lot of time and effort.”


The myth

Experts and experienced investors alike say that you should understand how investing works and know what’s going on in the market so you can make the right decisions to manage your portfolio properly.


Of course, doing these things involves spending many hours doing your research and analysis. That’s why many people believe that investing takes a lot of time and effort.


The reality

While you really should understand investing before you get started, remember that there are different ways to invest. If you buy assets directly, you’ll have full control over what to do with them. That means it’ll be up to you to figure out when to buy and sell them, and at what price.


It isn’t a good idea to do all these without researching first, because the information you’ll get will be the main basis for the analysis that should drive your decisions. Doing these without the research and analysis pretty much leaves your investment’s success or failure down to luck, and that’s something you really shouldn’t do.


However, if you put your money in a pooled fund (like a Unit Investment Trust Fund or a Mutual Fund), you won’t have to do any of this. That’s because each fund has a manager, a professional whose job is to figure out which transactions may grow the fund’s value, and your money along with it.


The fund manager takes care of the research, analysis and decisions so you don’t have to. That means you won’t have to spend any time taking care of your investment, aside from putting more money in (to achieve peso-cost averaging) and checking on the performance.


The verdict: It depends.

There isn’t anything wrong with wanting to manage your own investments, if you don’t mind handling the research, analysis and decision-making.


But if you can’t or don’t want to, there are still good options for you to invest without spending a lot of time and effort. In fact, starting out with a pooled fund can be a good way to dip your toe in the water before taking the full plunge.


Just remember to know what you’re getting into and learn how things work so you can make the decision that’s right for you.

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