Here are some myths & facts of the P2P platform and other investment options

Oct 1, 2021

Being armed with investing facts, and debunking myths rather than blindly letting them guide your decisions, is a good first step to successfully navigating the world of investments. A little knowledge can be a dangerous thing, yes, and not continually updating your knowledge on investment facts can lead to missed opportunities or money down the drain. For starters, here is useful information for the neophyte investor from the world’s first electronic exchange Nasdaq: five common investing myths that must be blasted.

Myth #1: Making an investment is complicated. Many people tend to adopt that kind of thinking as swift as they may describe their relationship status as “it’s complicated.” In a way, it is a form of dismissing further discussion about what they may regard as a private matter. One’s finance/savings & investment approach may be regarded as a personal decision.

Fact: Investing is not as complicated as some people make it out to be. It can be confounding, especially for beginning investors, but researching or taking time to know about companies, such as for popular investing options like stocks, and peer-to-peer funding platforms’ processes and offerings, can be well worth the effort. Security concern is among the factors making some people balk at investing online, or use platforms like peer-to-peer (P2P). In reality, a lot of investment and technology went to ensuring that customers will be able to transact smoothly, quickly, and securely.

Myth #2:  One should hire a financial expert or investments consultant before investing. It is also a myth net worth will increase overnight, and it will happen if one hires a money manager.

Fact: One need not hire an expert to embark on an investment journey. A first-time investor can take advice before investing, and also invest using his own stock knowledge and available funds, then build on that. The newbie investor may glean lots of useful insights from seasoned investors, many of whom started investing at a young age. An example is Warren Buffett, who started seriously investing at age 10, so that at 30, he had accumulated a net worth of $1 million; he built a financial base at a very young age, learned the ropes along the way, and used the power of compounding interest. Investors can utilize reliable platforms. Take for instance the Philippines’ leading peer-to-peer funding platform  Simply visiting the safe and reliable platform will lead the online visitor to a step-by-step process, while explaining how to lower investing risk using certain tools and approaches.

Myth #3: Putting investment off or thinking it is not the right time to buy.  

Fact: Investing early has payoffs. Balking, or putting investing off, translates to missed opportunities for growth and dividends. Why doesn t everyone invest in stocks?  One reason is the thought of ascertaining the potential return and volatility of the stock. Another is that it can be like a roller-coaster ride. One may not really know if the market will turn out favorably or improve. As with any other type of investment, an investor also needs to know his/her risk tolerance or profile. Generally, if an asset is held, or if a person stays invested for over one year, then any profit from the sale of the asset is considered long-term capital gain.

Myth #4: One needs a hefty amount to have a diversified portfolio. Among the investing myths that persists to this day is that a person needs to have a lot of funds, like from inherited wealth, to invest.

Fact: There are several investment options that are accessible, even to average-earning professionals or entrepreneurs. There are now easy-to-access online funding platforms and investment advisory services that make it possible for lots of individuals to invest with as much or as little as they like to shell out. 

Myth #5: Interrelated with myth number 4 is the notion that the stock market is for wealthy people only. Another myth revolving around the popular investing vehicle is that stocks that go up are bound to plummet.

Facts: Stocks only go up, and will continue to rise,  particularly if the company is run by a highly efficient management team. While the stock market does favor those who can afford to invest in it, and stay invested even during market downturns (not pulling out their money when alarming news comes out, or because they need it to live on), lots of people can open an account and invest in an S&P 500 index fund.  A stock investment can be one of several investments a person can have. A peer-to-peer investment can be another.  By creating a diversified portfolio, investors can achieve a target return while taking on the least amount of risk. In other words, when things do not fare well for one type of investment, another may reap above-market rates.

Another misinformation young and eager newbie stock market investors have is the tendency to think they are gambling on stocks. While we may refer to stock investing as a “stock market gamble,” such type of investment needs to be differentiated from gambling, which is merely getting money from a loser and giving it to a winner. There is also the long-held belief running through most people’s minds: “Can the stock market make you rich?” Possibly, especially if the investor is able to focus on purchasing growth companies at reasonable pricing.

Also another misconception about investing that the uninitiated encounter is that one has to regularly monitor investments.  Constantly monitoring investments is a habit most people have, and it has its upside and downside. Stock market developments need to be monitored, for instance. Not all investment types require a lot of monitoring, though. It can be helpful if you have done ample research, and are aware how the process goes.

An alternative investment that allows the investor some control yet does not require high-level monitoring, or keeping up with financial news (a myth in itself), is a peer-to-peer investment or auto investment in a funding platform like One can invest the minimum amount and then effectively forget about it, or just check on it occasionally. For more information about the low-maintenance investment tool that generates passive income (income while you sleep), visit Knowing your investment facts can banish confusion, avoid headaches, and save you a sum of money.