Introduction – Myths About Investing in Shares (and Why They Hurt You)
Myths About Investing in Shares have stopped millions of beginners from taking their first step into the stock market. Many young investors feel scared, confused, or misinformed because of the half-truths they hear from friends, relatives, news channels, or social media “experts.”
But here’s the real truth:
Investing in shares is one of the most powerful ways to build long-term wealth—if you understand how it works.
This blog will break down the 5 biggest myths about investing in shares and explain the real truths that new investors must know.
Let’s bust these myths one by one.
Myth 1: “Investing in Shares Is Just Like Gambling”
✅ Real Truth: Investing is based on data, research, strategy—not luck.
Many people believe that investing is gambling because both involve risk. But the source of risk is completely different:
🎲 Gambling
- Based purely on luck
- Outcomes are unpredictable
- No research or knowledge required
- The more you play, the more you lose
📈 Investing
- Based on fundamentals, data, charts, and business performance
- Predictable over the long term
- Requires research and discipline
- The longer you stay invested, the more you gain
Why this myth is dangerous:
It stops beginners from even trying, and they miss out on wealth creation.
Example: Myths About Investing in Shares
If you invested ₹10,000 in Nifty 50 20 years ago, it would be worth over ₹1,00,000+ today, purely through compounding.
Myth 2: “You Need a Lot of Money to Start Investing in Shares”
✅ Real Truth: You can start investing with as little as ₹100–₹500.
This is one of the most common Myths About Investing in Shares.
Today, with modern apps like:
- Zerodha
- Upstox
- Groww
You can buy:
- Fractional ETFs
- Small quantities of shares
- Mutual funds
- SIPs in stocks
✔ You do NOT need ₹10,000 or ₹1,00,000.
Even ₹100 invested consistently can grow into a powerful portfolio.
Example:
- ₹500 per month
- 12% annual returns
- 20-year period
Your wealth becomes:
👉 ₹4,75,000+
Starting small is not a weakness—it’s a smart strategy.
Myth 3: “Only Experts Can Make Money in the Stock Market”
✅ Real Truth: Anyone can learn investing with basic guidance.
This myth keeps young investors away from the stock market.
In reality:
- You don’t need to be a finance graduate
- You don’t need advanced math
- You don’t need to read 200-page annual reports
What you actually need:
- Basic understanding of companies
- Simple financial ratios (P/E, ROE, Debt-to-Equity)
- Patience
- Long-term mindset
Tools that make investing easier:
- Screener.in
- Ticker Tape
- TradingView
- Moneycontrol
Myth 4: “Long-Term Investing Is Always Safe”
✅ Real Truth: Long-term investing is smart—but only with the right stocks.
Time reduces risk—but only if the business is strong.
If you invest long-term in:
- Weak companies
- Poor management
- High-debt companies
- Falling industries
…you can lose money even after 10 years.
⚠ Example:
Companies like:
- Suzlon
- Yes Bank
- Vodafone Idea
—were once investor favourites. Long-term investors without research lost 70%–95% of their money.
✔ What long-term investors must check:
- Consistent revenue growth
- Good management
- Sustainable business model
- Low debt
- Strong competitive advantage
Myth 5: “You Should Follow Tips From Social Media or Friends”
✅ Real Truth: Blindly following tips is the fastest way to lose money.
Young investors often follow:
- WhatsApp stock tips
- Telegram groups
- YouTube “experts”
- Friend recommendations
But most of these tips:
❌ Are not backed by research
❌ Are influenced by market manipulation
❌ Focus on short-term gains
❌ Lead to emotional investing
✔ Always do your own research (DYOR)
📌 5-Step Quick Research Checklist:
- Is revenue growing?
- Is profit consistent?
- Is debt low?
- Is management trustworthy?
- Is the sector growing?
This transforms you from a tip-taker into a smart investor.
Bonus: 5 Real Truths Every New Investor Must Know
✔ Truth 1: Risk decreases with knowledge
The more you learn, the more confident you become.
✔ Truth 2: Consistency beats timing
Even professionals cannot time the market.
✔ Truth 3: Small steps matter
Invest ₹500 consistently and watch compounding work.
✔ Truth 4: Emotions are your enemy
Avoid panic selling and FOMO buying.
✔ Truth 5: Diversification protects your money
Always diversify across sectors and companies.
⚠ Common Mistakes Beginners Make
- Buying stocks without research
- Checking the portfolio daily
- Panic-selling during dips
- Investing based on hype
- Ignoring diversification
- Expecting quick profits
Avoid these mistakes to grow confidently.
FAQs – Myths About Investing in Shares
Q1. Is investing in shares safe for beginners?
Yes—if you invest in strong companies and diversify.
Q2. How much money do I need to start?
You can begin with ₹100–₹500.
Q3. Can I lose money in the market?
Yes—but knowledge and diversification reduce risk.
Q4. Which stocks should beginners choose?
Start with large-cap and blue-chip companies.
Q5. Should I check my portfolio daily?
No. Check monthly unless you are actively trading.
Conclusion
Understanding these 5 Big Myths About Investing in Shares is the first step toward becoming a confident, successful investor. Myths create fear, confusion, and hesitation—but the truths behind them empower you to take smarter decisions, avoid unnecessary risks, and build long-term wealth.
Investing is not about luck—it’s about knowledge, discipline, and consistency. Start small, learn continuously, and focus on long-term goals. Every successful investor begins with a single step—and your journey can start today.
It’s also important to remember that investing isn’t just about returns—it’s about developing a healthy financial mindset. The stock market teaches discipline, patience, and the ability to handle uncertainty. These are skills that benefit you far beyond investing. As you start breaking these myths and learning the real truths, your perspective about money, risk, and long-term planning becomes sharper. With each step, you begin transforming from a hesitant beginner into a responsible, informed investor capable of building true wealth.
Another big reason why myths spread quickly is because many new investors rely on hearsay instead of actual market experience. People who have never invested a single rupee often share negative opinions about the stock market, creating unnecessary fear among beginners. But once you understand how companies grow, how the market rewards patience, and how diversification protects your money, investing becomes much less intimidating. By replacing fear with knowledge, you’ll gain the confidence needed to make smart, long-term financial decisions.
