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You have done a lot of economic activity and now it is the right time for you to invest. But so far there are some myths about investments that are enough to make you hesitate to start the investment.

Here are some common myths:

• Investing is too risky
If you do not know what you are doing, investing can be extremely risky – such as driving without know how to drive, it can be dangerous too. Of course there is the possibility that you will lose money, but even if you do not invest there is a possibility you will still lose money – to coincide with inflation, which reduce the ability of your purchase. Understand and have a plan to get rid of fear that occurred due the investment.

• Broker or my adviser is able to help me choose a mutual fund
The choices are your mutual fund salesperson get paid a commission from the stocks that were sold, therefore it is more expensive then the funds are thus able to give them a better income. Furthermore, mutual fund shares is not the best investment choice for most investors, most of them is under the supervision and spending too much money.

• The bond market is for losers
Most investors lowered the size of the bond market, bond market is over and folding of the size of the stock market. Bonds are a vital part of portfolio investment and often provide remarkable benefits. The most recent credit crisis creates an extraordinary opportunity for investors to enter the bond markets as credit spreads. Bonds provide a fixed income as an opportunity for profit; do not demeaning the bond market.

• The best time to invest
Trying to predict when the market is the classic mistake of novice investors do. Trying to predict the market will make the investors often spend thousands of dollars, the best strategy is to invest consistently regardless of market conditions. The best time to invest is always present.

• Diversify as much as you can
Diversification is the most important component to your investment plan, you will hear experts and financial advisers are constantly talking about diversification, and they’re right. However, diversification does not always mean buying stocks or funds at random. The purpose of diversification is to reduce risk by holding investments that are not correlated. Moreover, studies have shown that reducing risk through diversification become negligible once you hold approximately 25-30 securities in various sectors and industries.

• Mutual funds are your best bet
The mutual fund industry spent millions to the power of advertising and sales to ensure you’ll be this myth. The fact is that mutual funds are consistently poor performers on the index they follow, they too spend a lot of fees and the advisers got a lot of big baskets revenue from it.

Investment may be risky and so is everything else in life. With a little research and time on your hands can build a decent portfolio with a reasonable price.

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