The five myths about growing your money
1. Investing is only for the rich
The idea that people who invest are made of money is long gone. Today, many people could invest and make their money work harder.
You can open an account with Ednites Credit Union Invest and get access to Coutts-managed investments with just £50. You can invest more or take money out any time you like, although generally, investing should be for the longer term – that’s five years or more.
2. You have to watch investments like a hawk
Using Ednites Credit Union Invest means a professional can do this for you. Investment managers at Coutts make changes to the Ednites Credit Union Invest funds based on their expert analysis of market moves. And through Ednites Credit Union Invest you can check in whenever you like to see how things are going.
3. Investing is expensive
Investment product fees do vary by provider, and it’s important to check them. But many online platforms are inexpensive. For example, Ednites Credit Union Invest fees and charges are currently no more than 0.72% of the amount you have invested. So for an investment of £500, that amounts to just 90p every three months.
4. Investing is too risky
When investing, it’s true that your capital is at risk and the value of your investment can go down as well as up along the way. Investing is recommended for the medium to long term (five years or more), and staying invested could see your money grow over time.
A basic principle of investing to help reduce risk is to spread your investment around rather than putting 'all your eggs in one basket’. This is called ‘diversification’ – and it’s built into our Ednites Credit Union Invest funds.
You get to decide how much risk you want to take too. We offer a choice of five funds, each with a different ‘risk level’ designed to match how adventurous or cautious you want to be and what you want to achieve.
5. Having money in savings is the same as investing
Many people wonder about the best way to grow their money. The right answer for you is all down to your own personal financial situation and goals. Savings have the advantage of being dependable, predictable and easy to access.
If you’re saving for a long-term goal though – typically five years or more – then investing your money has the potential to deliver a better return and help protect your buying power from the effects of inflation. The value of investments can go down as well as up.
Learn more about investments
Whether you’re an experienced investor or just finding out what investing is, we’ve got a range of articles to help you understand more about investing.
We regularly update our articles depending on what’s happening in the market so check back for future updates.