Investing myths busted

When you think of investing, it’s easy to imagine luxury yachts, private jets and stacks of cash. But the reality is far more down to earth and much more accessible than you might think.

The truth is you can start investing with not much money at all. Thanks to a wide range of services and products, you can invest whatever suits you – whether that’s a little or a lot.

If it works better for you, you could start small by investing a set amount each month. In fact, with Aviva, you can begin investing from just £25 a month, or with a single £500 payment.

Investing and risk go hand in hand, and it’s natural to be worried about risk when your cash is on the line.

But in reality, no-one can avoid risk completely. Even if your money’s in a savings account, there’s the risk of inflation eating into the true value of your money.

Imagine you put £100 in a drawer today. You don’t touch it. Ten years go by. During that time, prices rise by about 3% each year.

Now picture yourself opening that drawer a decade later. The £100 is still there. It’s the same, but the world around it has changed. Something that cost £100 back then now costs nearly £135.

So even though the number on the note hasn’t changed, what it can buy has shrunk. That’s the real impact of inflation: keeping your cash exactly where it is can mean getting less for your money in the future.

Managing investment risk

When it comes to investments, some tend to carry more risk than others. So it’s important to think about your financial goals, how long you plan to invest for, and the level of risk you're comfortable with.

One way to manage this is to diversify your investments, having a range of investments with different levels of risk. That way, risks are balanced so that if one of your investments drops in value, your eggs aren’t all in one basket.

Don’t know your exchange traded funds (ETFs) from your pound cost averaging? No worries – most people don’t when they’re starting out. And the good news is, you don’t need to speak “investing” fluently to begin.

Investing can feel full of complicated terms, but once you break them down, they’re often much simpler than they sound. For example:

• ETFs – basically bundles of investments you can buy in one go.
• Pound-cost averaging – just a fancy way of saying “investing a bit regularly, rather than all at once.”

See? Not so scary.

And if you’d like a bit more help, our Investing for beginners knowledge centre is designed exactly for that. It’s packed with lots of tools, guides and easy-explainer articles that take you through the essentials step-by-step.

No pressure, no jargon overload – just learn what you need at your own pace, what you need to know, when you need to know it. 

It’s easy to imagine investing as something that needs constant attention. Watching markets, tracking charts, and checking your account every five minutes. But the reality? It doesn’t need to take much time at all. 

Several platforms, funds and providers will manage your investments based on your goals, preferences and how much risk you’re comfortable with. Whether that’s fully hands-off, algorithm-based robo-advisers, or more active fund managers who make decisions on your behalf.

You can also make things even simpler by setting up automatic payments that invest a small amount on a regular basis. It’s a low‑effort way to build your investments over time, without needing to actively monitor what’s happening day to day.

In short, once you’ve set things up, investing can be something that quietly works in the background, not a full‑time job.

It’s natural to feel uneasy or worried if you see your investments fall. And it can be tempting to want to take your money out of the market when it looks less stable. But doing so can make it more likely you’ll lose money.

As the old investing adage goes, it’s not about timing the market, it’s about time in the market. Markets are unpredictable and can often bounce back quickly after falls. This means that if you take out your money during a downturn, you could risk missing out on that rebound. This can make a big difference to long-term growth.

Staying invested through the ups and downs, even when things look choppy, helps give your investments a better chance to recover over time. Short-term dips can feel unsettling, but staying the course is often one of the most powerful tools you have as an investor. 

Modern investing is more accessible, intuitive and supportive than ever. So, where do you begin? Here’s a few things to think about:

• Set clear money goals. Knowing what you’re aiming for makes it easier to decide how investing could help you get there.
• Think about your comfort with risk. Everyone’s different. Understanding how much uncertainty feels okay for you can guide the choices you make.
• Choose investments that fit your style. Whether you prefer a hands‑off approach or want to be more involved, there are options that match how you like to manage your money.
• Start small. You don’t need a big lump sum. Even small, regular amounts can build up over time.
• Do your own research. Use guides, tools and trusted resources to build your confidence and learn what you need, when you need it.

Aviva is here to demystify investing, and help new investors grow their money with confidence. For expert help investing in a way that fits your life and goals, check out our Investing for beginners hub.