How to conquer your fear of investing and start your portfolio(Isabel O'Brien)

How to Conquer Your Fear of Investing and Start Growing Your Portfolio

By Isabel O'Brien

Full Bio
Isabel O’Brien is an experienced businessjournalist who specializes in private equity, infrastructure, and financialmisconduct.
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Published July 15, 2025
Fact checked by Vikki Velasquez

Many people say they're scared to invest, butthere are simple strategies to help you get started.

7 Reasons You Haven’t Received YourTax Refund

With DIY investing blowing up on social media,it’s easy to fall into the trap of thinking that everyone around you has anestablished portfolio. However, the top comment on any financialinfluencer’s video on TikTok or YouTube usually echoes one sentiment:I want to invest, but I’m scared.
People who feel this way are more common than youmight think. According to a 2024 World Economic Forum survey, 40% ofindividuals made the decision not to invest because they feared losing money.1

Key Takeaways

Fear of investing is common. According to a 2024 World Economic Forum survey, 40% of people surveyed held off on investing in the market due to fear of losing money.
But waiting to invest can often cost people more money than they save by trying to time the market and invest at the right moment.
There are plenty of low-risk, easy investments that people can start with, such as exchange-traded funds (ETFs) and mutual funds.

Why Your Fear of Losing Money Is Costing You

A study by Charles Schwab found that the costs ofwaiting to invest often outweigh the benefits of perfect market timing. That’sbecause if you wait too long and get it wrong, you could be losing out on abunch of money from compoundinterest.2
“Avoiding investing feels like protection, butit’s expensive. Inflation quietly eats away at savings, growth gets delayed,and you end up working harder just to maintain, instead of using your money tobuild more freedom,” said Cindy Kumar, the chief executive officer of ElevatedAccounting. “The fear is real. But so is the cost of staying frozen.”
So, if you’re an anxious investor, where shouldyou begin?

Investment Options That Won’t KeepYou Up at Night

Asher Rogovy, chief investment officer of the advisory firmMagnifina, recommends startingwith index funds.

“They can hold hundreds of stocks. With so manystocks, investors can earn a typical return without worrying about acatastrophic loss from a single bad company,” he said.
Robert R. Johnson, a professor of finance at CreightonUniversity, agrees that a diversified stock portfolio is a key way to buildwealth.

“Counterintuitively, the biggest mistake manypeople make in investing is not taking enough risk,” he said. “There is an oldWall Street adage that states: You can sleep well or eat well. You will sleepwell if you commit funds to low-risk investments like moneymarket funds or Treasury bills,but your investments will not grow substantially and may even have troublekeeping pace with inflation. You will eat well by consistentlyinvesting in stocks.”

Johnson also recommends mutual funds. “Investingin diversified mutual funds or ETFs is a wonderful strategy for just about anyinvestor. Mutual funds are a terrific choice for investors who have limitedcapital to work with and cannot afford to purchase a broad range of securitiesto achieve adequatediversification,” he said.

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https://www.investopedia.com/the-ultimate-guide-to-safe-investments-for-achieving-short-term-goals-11745427]TheUltimate Guide to Safe Investments for Achieving Short-Term Goals

How to Build Confidence

Sometimes, though, investors’ anxieties don’t stemfrom what they invest in, but rather how. It can be nerve-wracking to foldlarge sums of money into an investment account all at once. That’s why expertsrecommend startingsmall.

“If you’re nervous, don’t try to deploy everythingat once. Spread your investments out over 12 or even 24 months. That gradualapproach builds muscle memory and makes it easier to stay the course,”said StephanShipe, a finance professor at Wake Forest University and founder of ScholarFinancial Advising.

“One of the best ways to overcome the fear ofinvesting is to use dollar-costaveraging. That means committing to invest a fixed amount on a setschedule—say, the first Monday of every month—no matter what the market isdoing," Shipe said. "Even if it’s crashing that day, you stick to theplan. No excuses."

He said this is helpful because the average marketreturn is positive over time. "Time in the market matters more than timingthe market," Shipe said. "Once people start investingregularly and see that their balance is growing, that fear starts togo away.”

Rogovy agrees, adding that this is a particularlygreat time to start small. “Now that many brokerages offer $0 commissionsand fractionalshares, small investors can build professional-grade portfolios withoutsignificant costs," Rogovy said. "It’s easier than ever for anyone tobuild a diversified stock portfolio."

The Bottom Line

At the end of the day, if your anxiety is keepingyou from making smart financial decisions for your future—such as investing inindex funds and mutual funds—it may be time to consult with a financialtherapist or other mental health professional. While investing can be scary, itis a necessary part of planning for a financiallystable future.

https://www.investopedia.com/overcome-your-investing-fears-11756674?hid=826f547fb8728ecdc720310d73686a3a4a8d78af&did=18613816-20250720&utm_campaign=investopedia_relationship-builder&utm_source=investopedia&utm_medium=email&utm_content=072025&lr_input=46d85c9688b213954fd4854992dbec698a1a7ac5c8caf56baa4d982a9bafde6d

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凡事唯有投入，結果才能深入; 凡事唯有付出，結果才能傑出;
凡事唯有磨鍊，結果才能熟練; 凡事唯有不煩，結果才能不凡。
能與智者同行，你會不同凡響; 能與高人為伍，你能登上巔峰。
你雖不能改變環境,但卻可以轉換心境;你雖不能樣樣勝利,但卻可以事事盡力。
Dr. Chao Yuang Shiang, senior consultant & Assistant professor,Dep.of Finance,Nanhua University,Taiwan.
website:amazon.com/author/drchao

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