The myth
When you start looking for an investment, you’ll find that there are a lot of investment products available in the market. From stocks to bonds, pooled funds and more, there are many options for people to try to grow their money with.
That’s why some people believe that there’s a right investment for everyone.
Why do people believe it?
Different investment vehicles can have different characteristics, like their time horizon, aim and risk suitability. Add to that the companies or institutions that you could put your money into and their various purposes, and you’ll see a wide range of options.
This makes it easy for you to match your situation and needs with an investment product that has the potential to help you reach your money goal.
For example, you could buy stocks of a company that focuses on environment-friendly energy sources or support the nation by buying Retail Treasury Bonds.
If you want to invest for retirement, to start your own business in the future, or to preserve the value of your money against inflation, there are products that may help you do those.
Risks of believing this myth
Knowing all the options that fit your circumstances is a good start to your investing journey. Just remember that there might not be just one “right” investment for you.
In that case, you’ll have to make a choice on which one to put your money into. However, nothing will stop you from investing in more than one product. You can do that at the same time, or one before the other.
Verdict: It depends (but mostly true).
While it’s likely that there is an investment product out there that fits your situation and needs, it may not be the only match for you.
Don’t forget that as time passes, your circumstances may change. In that case, investments which were right for you before may not be the best choice for you at that point and so you should check up on your portfolio.
At the end of the day, what matters the most is that you start investing as soon as you can to have a better chance at reaching your goal.
