Four myths that stop people investing – and what to know instead
Thinking about investing but unsure where to start? We debunk four common investing myths that could be holding you back – and share the facts that can help you invest with confidence.
If you’ve ever thought about investing but felt unsure, overwhelmed or worried about getting it wrong, you’re not alone.
Our comprehensive research1 into saving and investing in the UK shows that many people want to invest – but hold back because of a few common beliefs that make investing feel harder, riskier or less accessible than it really is.
Here are four common investing myths that stop people getting started – and what’s helpful to know instead.
Myth 1: “Saving and investing are totally different things”
For many people, saving money in cash – for example a bank or savings account – feels calm, familiar and reassuring. Investing, by contrast, can feel uncertain or complicated – like a different world entirely. In fact, our research found that 81% of the 2,000 people surveyed2 believe saving and investing are fundamentally different activities.
What to focus on instead:
Saving and investing play different roles, but they’re often part of the same big picture. Saving provides short-term security and easy access, often through regular, familiar habits. Investing builds on those same behaviours by giving your money the chance for greater growth over time, so you can reach your longer-term goals faster.
A simple next step:
Try thinking about your money as different pots that work alongside each other. For example, one pot for emergency savings and another for longer-term goals where you want your money to grow over time.
Myth 2: “Investing is too risky – I could lose everything”
Worrying about losing money is one of the biggest reasons people avoid investing: 51% of non-investors say it’s why they don’t invest, and many associate investing with the fear of “losing everything”.
These worries are understandable. Wanting to protect your money is completely natural – especially when you’ve worked hard to build it up. Holding cash often feels safest because the amount doesn’t fluctuate from day to day.
What to focus on instead:
Investing can feel risky when it’s new. But the level of risk depends on what you invest in and how long you stay invested. History shows that taking a balanced approach and investing over long periods reduces the chance of losing money.
Vanguard's analysis of a balanced portfolio of 60% shares and 40% bonds3 between 1990 and 2026 shows the chance of losing money falls from around 16% over one year, to 7% over three years and 0% over five years4.
It’s also important to think about what happens to your money over time if it stays in cash. When prices rise, the spending power of cash can slowly shrink, meaning your money buys less in the future than it does today – even though the amount in your account stays the same.
Our research also shows that perceived risk feels biggest before people start investing. Many investors say they felt nervous and unsure at the beginning, but that confidence grew as they became more familiar with how investing works.
A simple next step:
Instead of asking “Is investing risky?”, ask whether doing nothing carries its own risk. Consider starting with a small amount of money. Many people begin with a modest sum and treat it as a learning step. Getting started – even in a small way – can help turn uncertainty into understanding, and confidence often builds from there.
Myth 3: “Investing takes too much time and effort”
Another common belief is that investing requires constant attention – watching the markets, making frequent decisions and understanding lots of complex jargon.
Our research found that 83% of non-investors believe starting to invest would require a lot of effort, and 89% think managing investments would too.
What to focus on instead:
Many people overestimate how complicated investing needs to be. In reality, most investors don’t spend their time constantly checking or changing things – they focus on consistency and giving their money time to grow. Many also start with simple, low-effort approaches, which makes investing much easier than they expected.
A simple next step:
If investing feels overwhelming, consider options where much of the decision making is done for you. You can set up an account and then get on with life – you don’t need to manage things yourself or worry about what markets are doing. We believe doing less is often a good thing when it comes to investing – checking in occasionally to see if your goals have changed and, if not, leaving things as they are.
Myth 4: “I have to navigate investing alone”
Even people who want to invest often feel stuck. With so much information online it can be hard to know who or what to trust.
Our research shows many non-investors feel they’re navigating investing alone. This can make starting feel risky, especially if friends or family don’t invest either.
What to focus on instead:
You don’t need to have all the answers on day one. Investing is a learning process and confidence is built gradually – through experience and time. Many people begin investing after reassurance from others or with a bit of support, rather than by figuring everything out on their own.
A simple next step:
If investing feels intimidating, try not to go it alone. A conversation with someone you trust can help you explore questions and build confidence, one step at a time.
How to invest with Vanguard
Investing doesn’t have to be complicated – and you don’t have to do it by yourself. At Vanguard, we offer a range of services to help you get started, depending on how much support you want along the way:
- Build your own portfolio: if you’re comfortable being hands on, you can choose from our wide range of low-cost funds and exchange-traded funds (ETFs) to build a portfolio yourself.
- Ready-made portfolio: if you want to keep things simple, our all-in-one solutions – such as our LifeStrategy funds or Target Retirement funds – combine different types of investments into a single, ready-made portfolio.
- Managed services: if you’d like a helping hand, our Managed service does the work for you. We select a portfolio of investments on your behalf, based on your attitude to risk, and manage it for you over time.
Whichever route you choose, the aim is the same: to help you move from saving to investing in a way that feels manageable and right for you.
1 The British Money Mindset 2026. Vanguard, July 2026.
2 Survey of 2,000 UK adults with at least £1,000 in investable assets, February to March 2026.
3 Bonds are a type of loan issued by governments or companies, which typically pay a fixed amount of interest and return the capital at the end of the term.
4 Source: Vanguard calculations in GBP, based on data from Refinitiv and Bloomberg, as at 16 June 2026. The data covers all the 1, 3 and 5 year periods from 1 February 1990 to 27 May 2026. Shares are represented by the MSCI AC World Total Return Index and bonds by the Bloomberg Global Aggregate Index.
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