Over the years, many people have shunned investment because they are still bound by unsupportive myths concerning investment.In the spirit of creating an empowering environment for investiging, Gold Avenue Africa provides an avenue to demystify these myths through financial literacy:- Class of investors and Golden circle platforms.
In this article we look into some of the myths of investment commonly held by potential investors.
- Investing is hard: Most people are intimidated by the thought of investing. We have grown and gone to school without being exposed much to how money works. Most people therefore believes investing needs high level of education to master it which is not always the case. Investment has never been easier, a lot of information is provided now and most importantly financial literacy is gaining root in our country which basically is the ability to know how to create, manage and grow wealth.
- You are an investor by simply saving: Research has it that 95% of potential investors in Kenya do not invest because they don’t know how or where to invest but they save. However most do this with a mindset that, if they don’t save, then they will have nothing. That act alone cannot make one an investor. An investor saves with an intention to put that seed in a platform that grows and multiplies it.
- Investing require a lot of money: For a lot of potential investors, the excuse they always give is they do not yet have enough money to put into an investment. The fact that most of us have not learnt the basics of personal finance will never understand the amounts of money that go into waste on monthly basis for lack of proper budgeting and tracking of our expenses. It is through learning basics of financial literacy that we understand everyone has an opportunity to become an investor. More so, one can start investing in stocks with as little as 1,000, however as a retail trader. Government bonds were initially minimum at Kes 50,000 but recently one can secure a treasury bond of 3,000 which is Mpesa supported.
- Investment is risky: If it’s not about lack of enough to invest, the sentiment with many will shift to investment being risky. Someone will opt to put their money under the pillow to protect it from risk but even there it can be eaten up! That is a mindset of centuries long gone, the truth is life is a risk in itself so it’s never a convincing reason. When investing, there is risk mitigation through Credit Risk Management when you involve a professional investor.
- Investment are for those in their 50s: Most potential investors procrastinate investing because they have the notion that they do not have time and the money to invest. They assume investment is for those in their 50’s who have earned and saved enough for investment. However things are changing as investment should be a life style not a stage in life. Most young people in their 17th birthday are investing, 20+ are coming together to invest as something we have seen at Gold Avenue Africa.
- Past performance guarantee future returns: This mostly affects retail traders who has not mastered the dynamics of the market as well as following the crowd. This occurs when people are not able to sieve the market color from the market noise which can prove costly in the long run. Every market should be thoroughly researched and look into the sustainability of the same otherwise performance in the recent past may not equal better performance in the near future.
- Rich quick schemes: Sometimes potential investors are lured to investment that guarantee them quick returns. Weekly or even monthly. Sustainable investments require time and patience. Investing in financial literacy is a sure way to help one identify real investment deals without getting into scams and pyramid schemes that are not sustainable in the long run. Good investment is where there is transformation and impact generational.
In alignment to our core conviction and mission to inspire and disciple, we responded to the need and demand for individuals, and institutions to learn about financial management and the different asset classes available for investment with the aim to preserve and grow one’s initial Capital or savings.
We achieve this mandate through the following products:
i)Class of investment
ii) Golden circle – Networking event.
Our Season Two of Class of Investor Starts on 9th June at a fee of Kes 15,000 and registrations are going on. Hit this link to learn more of our financial literacy mandate: – http://goldavenueafrica.com/financial-literacy/
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