Myths about investments are not just mass delusions. These are hidden traps that deprive private investors of millions every year. Misconceptions distort the perception of risk, skew strategies, and push towards unprofitable decisions. They are especially dangerous for those who are just starting their journey in the investment sphere. Under the influence of myths, newcomers bet on unstable assets, overestimate profitability, ignore analysis, and fail to build protective mechanisms. Investing requires clear thinking, which means getting rid of illusions.
Myth 1: “investments mean quick money without effort”
The mistaken expectation of easy money is the foundation of all subsequent losses. The idea that investments work as automatic income without involvement was formed during the hype of cryptocurrencies and aggressive advertising by pseudo-brokers. Reality: investments do not bring instant profit. On average, according to Russian market data, the return on a balanced portfolio (bonds, stocks, ETFs) is 9–12% per year. The level of risk directly depends on the asset structure. Example: a portfolio consisting of 60% OFZs and 40% ETFs on the Moscow Exchange index showed a return of 10.4% in 2023, but with a decline to -5% in March and November.
Simple calculation: investing in OFZ-PK series 29020 for 500,000 ₽ will bring in about 42,000 ₽ per year — provided it is held until maturity without early sale. These are not easy millions per month. An investor acts with a cold calculation, not expecting magical profits.
Myth 2: “investing is complicated”
The myth about investments is actively supported by those who have not understood it themselves. In reality, most basic actions are automated and available at an intuitive level. Modern brokerage platforms simplify the selection of instruments, provide collections of strategies, visualize portfolios, and offer recommendations based on risk profile.
For a novice investor, it is enough to install an app — for example, “Tinkoff Investments,” “SberInvestor,” or “VTB My Investments.” All actions — from opening an account to buying the first securities — take no more than 15 minutes. The entry level is comparable to online banking.
The beginner section on these platforms offers step-by-step assistance: which assets to choose, when to take profits, how to reinvest coupons. The simplicity of the interface does not negate the importance of analysis but eliminates the need for in-depth understanding of complex charts from day one.
Myth 3: “a large capital is needed”
One of the most enduring myths about investments is the need for a million rubles to start. In practice, the entry threshold is symbolic. Through the same “Tinkoff Investments,” you can start with 100 ₽. There are ETFs, fractional shares, access to OFZs and bonds of private companies starting from 1,000 ₽. Even with a small capital, it is possible to build a balanced portfolio.
Example: investing in the VTBE fund on the Moscow Exchange index (unit price ~1,400 ₽), plus bond 26240 for 1,000 ₽, Sberbank stock for 310 ₽ — a complete starting portfolio for 2,710 ₽. This approach allows testing a strategy and gradually building capital. Thanks to the low entry threshold, even a school student can open a brokerage account under parental control and start investing.
Myth 4: “investing requires a lot of time”
The mistaken image of an investor as someone who spends hours analyzing charts has nothing to do with the reality of a retail investor. With a passive strategy, dedicating 20–30 minutes a week to the process is sufficient. Auto-investment functions, recurring portfolios, price change notifications, and stop-losses allow automating a large part of the tasks. In the “Finam” app, an investor sets up periodic purchases: every month, the system acquires the necessary ETFs and bonds according to the specified structure.
Even trading using ready signals, for example, through QUIK or SmartX, with proper discipline takes no more than an hour a day. Time spent corresponds to the format: passive income — minimum time, active — slightly more, but without delving into terminals and codes.
Myth 5: “only real estate is reliable”
A popular myth about investments in Russia is the belief in the exceptional reliability of real estate. In reality, the rental market is subject to volatility, tax innovations, and vacancies. Profitability rarely exceeds 5% per annum after all deductions and expenses. Example: an apartment in Kazan for 7.5 million ₽ is rented out for 35,000 ₽. Gross yield is 5.6%, but after property tax, personal income tax, utilities, and maintenance, it remains around 3.9%. Moreover, liquidity is lower: selling the property at market price does not happen immediately.
Alternative: buying bonds for the same amount. A portfolio of OFZs and corporate bonds with a yield of 11% will bring in 825,000 ₽ over 12 months. If desired, quick realization on the exchange without wasting time is possible. Real estate is an asset, not a benchmark of stability.
Myth 6: “guaranteed profit exists”
Claims of “risk-free income” are the main sign of financial fraud. In legal markets, profitability is always linked to probability and degree of risk. Even government OFZs do not guarantee full capital protection when sold before maturity.
Developed strategies evaluate not only potential profit but also the depth of drawdowns. Example: when investing in Rosneft bonds with an 11% coupon, price changes are possible due to the Central Bank rate. With the threshold rising to 18% (as in 2022), asset prices drop by 4–6%, nullifying coupon income upon early sale.
How to minimize risks in investing? Asset allocation by class (stocks, bonds, ETFs), regular rebalancing, stop-losses, limiting the share of aggressive types to 20%. The myth of guarantees in investments hinders strategic thinking and leads to losses.
Myth 7: “you need to know everything to start”
One of the most demotivating statements. Paradoxically, the longer the start is postponed, the higher the chance of missing the best entry points. Investments for beginners are based on the principle of gradual immersion. The first steps involve setting up an individual investment account, choosing basic assets, and tracking results.
A novice invests in ETFs on the S&P 500 index, Russian OFZs, stocks of top-tier companies. The platform “Alfa Investments” offers ready-made portfolios for low risk, starting from 5,000 ₽. This is enough to understand how mechanics work, assess volatility, and start disciplined management. The main thing is not to delay. Complexity disappears with practice. The earlier the start, the more chances for capitalization and dividend flow growth.
Myth 8: “risks always lead to losses”
Risk is not an enemy but a tool. Risk management is the basis of strategic investing. Diversification tools, position limits, hedging, and insurance allow controlling drawdowns.
Professional investors use Value at Risk (VaR), Sharpe ratios, Standard Deviation of returns to assess risk. Even simple methods, such as buying dividend-paying stocks (Surgutneftegaz — 12.3% dividend in 2024), reduce income volatility. An investor controls risk by building a portfolio considering goals, investment horizon, and acceptable drawdown level. Investment myths demonize risk instead of using it as a tool to increase profitability.
Conclusion
Investment myths hinder the development of real strategies, replace knowledge with emotions, and push towards losses. Starting is simple: you need minimal capital, access to a brokerage account, and a sound approach. Stocks, bonds, ETFs, coupons, portfolio, profit — tools managed by a disciplined person, not fantasies.
Securities are still one of the most popular ways to generate stable passive income. First of all, it’s about stocks and bonds. With stocks of large, reliable companies like Apple, Tesla and Gazprom, you can share in their success.
By the end of 2024, successful investments require thoughtful asset selection and a smart diversification approach. Where to invest your money to generate passive income is a question that many people are concerned about. The answer lies in putting together a balanced investment portfolio. Financial independence starts with conscious decisions. Diversification, such as investments in companies, real estate, cryptocurrencies and securities, will help you achieve this goal.