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5 Tips to Overcome Your Fear of Investing

Are you avoiding investing because of an underlying fear? Has your fear turned out to be a hindrance to your investment?

If your answer is yes, this article shall suggest a few simple tips to help you overcome your fear of investment.

In the initial phase, most people hesitate to invest. A significant part of their concerns is the fear of financial loss. For most investors, the apprehension of monetary loss is one of the most substantial obstacles. If you’re an amateur, you might fear getting carried away by emotions and fall for situations outside your control.

It’s better late than never when it comes to investing. Do not let your fears hold you back. Consider taking action to eliminate fear-based hesitations and become a successful investor.

How to Overcome Fear and Invest Successfully?

Regarding investment, it’s okay to begin with baby steps and small investments. Gradually you get your feet wet, learn more and become more confident in overcoming your fear.

Here are some tips suggested for overcoming the fear of investment-

1. Educate Yourself

When investing, knowledge is an essential asset.

Try reading books and articles on investing that can help you develop a basic understanding of the subject. Many online courses cover the basics of investing. Further, attend seminars, workshops, investment communities, or forums on investing and comprehend the approaches. These events can provide an opportunity to learn from experts in person. Research successful investors and read about their investment strategies. Keep up-to-date with financial news by reading newspapers, websites, and other sources of financial information. This can help you understand the broader economic context that affects investment decisions.

Developing a deep understanding of investment takes time and effort. But the more you learn, the more confident you will gather and make investment decisions to achieve your goals.

If you’re curious about balancing risk and reward , don’t miss our insights in “5 Simple Tips to Simplify Your Investments in Your 20s”

2.Have a Clear Investment Strategy

With a road map in hand, getting to any destination would not seem too difficult, even if you haven’t visited the spot earlier. This is the same purpose of an investment strategy.

Investment with an investment plan including understanding products like a mutual funds loan, makes the process simple and easier. You can build your portfolio to best suit your financial goals, investment horizon and risk profile. It might require some time to get adjusted to the new investment plan.

But once you become comfortable, you shall slowly adjust your method over time to refine it. Try observing others, gather knowledge and apply those skills and ideas. Make sure you revise your strategies and switch along the way.

With a confident investment strategy, you shall overcome your fear of investment.

3.Don’t Rush into it

Refrain from jumping haphazardly into the game of investment. Try to follow a certain method for investment. For example, if you spend your entire income on yourself, you must set a timeline to invest a certain percentage of your income.

Initially, you can invest 20% of your income for the next 12 months. When you get better with investment, you can increase your investments according to your goals and preference. The objective is to start small and remain consistent with it.

Take time to observe and learn from your mistakes; soon, your fears will dissipate.


Diversify the investments across different asset classes to reduce your risk, and consider options like a mutual funds loan for additional financial flexibility. By spreading your investments across different areas, you minimize the impact of any one investment or market downturn on your portfolio. It can enhance the potential for returns by spreading your investments across different areas. You may be able to capture gains in different areas of the market, providing a better overall return.

Diversification can increase your confidence in your investment strategy by providing a sense of security and stability. A well-diversified portfolio can make you feel more comfortable and help you overcome the fear of investing.

5.Building an Emergency Fund

It’s crucial to have sufficient savings to cover three to six months of essential living expenses. Investing always carries some level of risk. An emergency fund can help you overcome your fear of investment by providing a safety net during unexpected expenses or a loss of income. It ensures peace of mind and allows you to invest without worrying about what would happen if you needed to access your funds quickly. It can give you the confidence to invest in riskier assets or hold on to investments during market downturns. By having an emergency fund, you can avoid derailing your investment goals and stay on track even if unexpected expenses arise.

Additional tip: Don’t Become Discouraged

Things do not always go as planned. Markets are volatile, economies might expand or contract and investors with risky plans might panic. Instead of getting discouraged, try minimizing losses. Start small and be consistent; let it grow. As said, patience is a virtue, and it is even more so when investing.

Frequently asked questions

All investments have some risk. But mutual funds try to reduce risk by investing in many different things. So, if one thing doesn’t do well, the other might make up for it.

We tailor our advice and suggestions to your needs. If wealth management is your goal, our algorithms go through millions of data points to come up with suggestions that sit perfectly with your risk appetite, existing financial goals and the prevailing market conditions. If you are interested in credit, we address the need while also ensuring you do not compromise on your broader financial goals.

Most mutual funds let you take out your money when you want. But some might have rules or charges if you take it out too soon.

To start, you can talk to a bank or a financial advisor. They can guide you on how to put your money in a mutual fund.

Yes, there might be some charges. These are for managing the fund and other services. It’s good to ask about these before you invest.

No, you don’t need a lot of money. Many mutual funds allow you to start with a small amount as low as INR 500.