Five myths that keep people from investing

Fact:
No, investing is not just for millionaires. In theory, you can start investing with as little as a few hundred Danish kroner. The amount you invest is of less importance, what is more important is that you focus on when you expect you will need the money you invest. As a rule of thumb, you should have an investment horizon of at least three years.

Moreover, you can also set up a monthly investment, so that an amount is invested for you every month – as little as DKK 350. And even a small monthly amount can grow into a fair amount over time. 

Fact: 
If you want to do the investing yourself, that is, picking individual shares and bonds, you need a certain level of knowledge. But you do not need to have a business degree or to subscribe to a business newspaper to invest.  

Try our guide for help to find the investment that is right for you.

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You make your choice by adjusting the proportion of shares and bonds, which are typically the two cornerstones when you invest.

In the long run, shares produce the highest expected return but also involve a higher risk. Share prices fluctuate more than bond prices and normally result in larger losses in bad times.   

Our June digital investment solution can give you a clear recommendation for a fund with a distribution between shares and bonds that is right for you. You can also buy balanced funds via Danske Monthly Investment.

Note that having your money sitting in a bank account or lying at home is also not without risk because of inflation. You can minimise that risk by investing the money instead.

Fact:
Investing is associated with costs – for instance, the costs of buying and selling your investments and annual current costs. But no, investing is not necessarily expensive. At the end of the day, it depends on the solution you choose, and digital trading platforms have lowered their costs in recent years. 

For example, with our Danske Monthly Investment digital solution, you can invest a fixed amount every month without having to pay the costs of buying the investments. 

Another example is investment in what is known as index-linked funds with shares where the investment mix is determined automatically. Here, the annual current costs are lower than for funds for which experts pick the individual shares.