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“One investment is enough.”


The myth

Investing can be a big step for you, and it has the potential to help you reach your money goal in the future. However, it takes discipline to start and maintain an investment, and it may not be very easy to have more than one.


That’s why some people believe that one investment is enough.


Why do people believe it?

If you’ve chosen the right product to put money in and your returns are as expected (or at least at a rate that makes reaching your goal possible), you may be satisfied with having just one investment.


Also, having another investment means that you’ll need to set aside more money from your income. Depending on your situation, this might require you to be a little strict with how you budget your money and reduce your expenses, especially on non-essential things.


While ultimately good for your future, this can lead people to put off making a second investment. Sometimes, they never get around to actually making another one.


Risks of believing this myth

While having an investment is good, limiting your money to just one product means that you won’t be getting the benefits of a diversified portfolio.


In case something bad happens to a company, industry or asset class, you might not be affected so much if you have more than one investment. Of course, the other product should be chosen carefully to make sure that its characteristics are different from the first investment.


A second investment also means more potential returns for you, and so you could get to your goal much faster than if you only had one investment.


Verdict: It depends (but mostly false).

While a single investment may be enough for you to reach your money goal, there are many benefits that you could enjoy if you had more than one in your portfolio.


If maintaining one investment is your limit right now, that’s fine. Just remember to prepare properly to make new ones in the future.


When you’re ready, don’t forget to follow our tips on choosing additional investments for a better experience.

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