In an effort to enhance financial literacy and empower Nigerians to make informed financial decisions, Stanbic IBTC Asset Management is addressing prevalent money myths that often hinder wealth creation and financial security.

Money myths, ranging from the belief that only the wealthy can invest, to the misconception that one cannot invest with small amounts, often shape financial behaviour in ways that limit long-term growth. These misconceptions prevent individuals, particularly young people, and aspiring investors, from seizing wealth-building opportunities available within the formal economy. Instead, they are drawn to quick and misleading Ponzi schemes that exploit their lack of knowledge.

Recognising these challenges, Stanbic IBTC Asset Management launched a campaign to inspire individuals to rethink their financial habits by exploring how money “thinks” about investing. The campaign, designed to demystify investment fears and misconceptions, encourages people to reassess their attitudes towards money and make strategic decisions to grow it. With inflation eroding the value of uninvested cash and financial markets offering long-term growth opportunities, experts suggest that now is the time to put money to work.

Busola Jejelowo, Chief Executive of Stanbic IBTC Asset Management, recently shared insights on the company’s mission to provide clarity by addressing misleading financial narratives and replacing them with practical advice.

In her statement, she emphasised, “In an era of financial uncertainty, it is crucial to make informed, confident investment choices. We believe that financial growth is a journey of partnership, and many people make financial decisions based on myths rather than facts, which can limit their ability to build sustainable wealth. With the Money’s Mind campaign, we aim to correct these misconceptions and provide individuals with the right tools and knowledge to take control of their financial future.”

Busola further mentioned that these tools have been housed in BluNest, Stanbic IBTC Asset Management’s intuitive digital investment platform. BluNest offers new and existing investors access to a variety of investment portfolios, including Money Market Portfolios, Commercial Papers, Treasury Bills, and Bonds.

Some notable features of BluNest include The Wallet, a feature that allows customers to fund and purchase any investment instrument seamlessly; Auto-Invest, which helps automate investments periodically to keep users on track to meet their financial goals; and Target Savings, which assists customers in saving and making goal-oriented investments for specific milestones.

In today’s digital era, accessibility to financial information is more crucial than ever. BluNest by Stanbic IBTC Asset Management leverages technology to enhance financial education, ensuring that Nigerians can access valuable resources anytime, anywhere. Users can monitor investments, gain real-time market insights, and receive expert guidance tailored to their financial objectives.

Stanbic IBTC Asset Management remains committed to building a financially literate society where individuals can take charge of their financial futures. The organisation has shown a particular interest in nurturing young investors through Beyond Dreams, a youth-centric community focused on sharing relatable investment insights with a younger demographic, equipping them with the right tools to make more informed investment decisions.

The Money’s Mind campaign reflects this commitment, fostering a shift from financial myths to financial empowerment. By prioritising education, accessibility, and expert-backed solutions, the company reinforces its role as a trusted partner in financial planning, helping Nigerians navigate their journey toward long-term financial security.

President Donald Trump wants to celebrate his birthday like a king: not with cake or candles, but with a $45 million military parade through the streets of Washington, D.C. Officially, the parade is only to mark the U.S. Army’s birthday, not the president’s the same day; in reality, the military’s celebration, though long planned, did not include a parade until his administration got involved. On the day the Army was founded to defeat tyranny, he’s getting a parade and using your tax money to do so.

This chilling spectacle pulls us away from the ideal of nonviolence that has paved the way for freedom movements in this country for generations. That’s not freedom. That’s not democracy. That’s not American. So on June 14, we the people are rising up and declaring that in America, we do not have a king. Across every U.S. state and territory, in cities, towns, and rural communities alike, millions of us will join the “No Kings” mass mobilization.

Trump’s power doesn’t just come from his title; it comes from the myth that he’s untouchable.

The president is using the same playbook we’ve seen in other countries throughout history: concentrate power, crush dissent, target vulnerable communities, enrich yourself, and distract the public with shows of force. He’s moved swiftly to erode the guardrails of democracy. He’s attacked the press and public universities, purged civil servants, and ignored court orders. He’s slashing budgets for public services, moved to erase hard-won victories for civil rights, ordered the hounding of immigrants in schools, places of worship and job sites, and ignored due process while deporting migrants to dangerous foreign prisons.

Now, in the very same week when he dispatches the National Guard and the Marines to Los Angeles to silence protesters’ righteous cries for justice in the face of his cruel assaults on our immigrant brothers and sisters, he hosts a grand parade. We hold a parade of the people.

Trump’s power doesn’t just come from his title; it comes from the myth that he’s untouchable. That he can say and do whatever he wants, and no one can stop him. But that myth only exists if we let it. Authoritarianism feeds on fear and silence. It survives when institutions go along, and when people give up. Already, too many elected officials, business leaders, and civic institutions have fallen in line.

But since his inauguration, millions of Americans have rejected Trump’s myth. Thousands of protests around the country have denounced his authoritarian moves, his attempts to rewrite this country’s history and his moves to destroy our already tattered safety net. And the more people have seen of Trump’s lawless second term, the less popular he has become.

A “No Kings” protest last Presidents Day. Jose Luis Magana / AP

Now, this Saturday, Americans everywhere will take to the streets for more than 1,500 protests. From Washington to Florida, from to California to Maine, we come together in this latest instance of sustained resistance to this power-hungry president. We’re proud to march together in the tradition of moral resistance laid down by Dr. Martin Luther King Jr., and carried forward by generations of freedom fighters, who knew that justice is not inevitable, it takes a movement.

Authoritarian moments can feel permanent. But they never are.

The time for assessing this administration is over — now is the moment to raise our voices and be heard. Not just to protest this parade, but to affirm something deeper: that power belongs to the people, that democracy is worth defending, that we still believe in a government of, by, and for the people. Inspired by Dr. King’s legacy, this mobilization reminds us of his vision of a just, inclusive, and equitable society. A dream toward which we have dedicated our lives’ and urge everyone to stand together in the face of this latest challenge to our fragile democracy.

Authoritarian moments can feel permanent. But they never are. They crack when people speak. They crumble when people act. And they collapse when courage becomes contagious. Trump is counting on our fear. We’re betting on our courage. Trump wants a crown, but we won’t bow. We will rise.

We may earn money from links on this page, but commission does not influence what we write or the products we recommend. AOL upholds a rigorous editorial process to ensure what we publish is fair, accurate and trustworthy.

Market volatility struck again this week as Tesla shares plunged 14% amid a public feud between Elon Musk and President Trump over government spending and trade policies. The dramatic fallout — which saw Trump threaten to cut billions in federal contracts with Musk’s companies while Musk suggested Trump should be impeached — wiped roughly $152 billion off Tesla’s market value in a single day.

During such turbulent conditions, investment misconceptions spread faster than wild fire. From comparing investing to gambling to believing investing requires thousands of dollars and a Wolf of Wall Street attitude to be profitable, these persistent myths sideline many people and keep them from growing their wealth.

The reality is that modern investment platforms have removed traditional barriers, letting you start building wealth with any amount, no matter how small. Commission-free trading, fractional shares and robo-advisors have transformed investing from an exclusive club into an accessible tool for everyone. While consistent, long-term investing helps you ignore the noise and benefit from the market’s historical 10% average annual returns.

While investments carry risk and don’t guarantee returns, key to a successful long-term strategy is separating the facts from fiction and avoiding emotional reactions. Let’s examine five of the most common investing myths and uncover the facts behind them.

In this article:

Myth #1: “You need a lot of money to start investing”

Gone are the days when investing required thousands of dollars to get started. Today’s top investment platforms dramatically lower the barriers to entry, making it possible to begin building wealth with just a few dollars.

“There is a common misconception that investing is only for rich people, either because financial institutions will refuse service to people in one’s income bracket or because of a perceived fee for entry,” says Thomas Maluck, an NFEC-accredited financial advocate in Columbia, South Carolina. “The most popular retail brokerages offer no-fee, fractional share investing for as low as $1 invested.”

Even traditional brokers have eliminated fees and trading commissions on stocks and exchange-traded funds (ETFs), making investing more accessible than ever. Plus, most investing platforms now offer fractional shares, allowing you to buy a portion of a stock rather than the whole thing. For example, instead of needing $200 for one share of Apple (AAPL) stock, you could invest $10 and own 5% of a share.

🔍 What are ETFs? An ETF is a basket of stocks and other assets that you can buy all at once. When you purchase an ETF share, you’re actually buying tiny pieces of hundreds or thousands of companies. For example, an S&P 500 ETF lets you own a slice of America’s 500 largest companies with a single purchase. Mutual funds work similarly but are typically actively managed and may require higher minimum investments.

This combination of commission-free trading, fractional shares and diversified funds has revolutionized investing for everyday people.

Here’s what you can expect to pay and how much you’ll need to start at some popular investment platforms.

Platform Minimum to start Fees Acorns • $5 • $3 to $12 per month SoFi Invest • $5 for self-directed investing • $50 for automated investing • $0 for self-directed investing

• 0.25% annual advisory fee for automated investing Wealthfront • $1 for self-directed investing • $500 for automated investing • $0 for self-directed investing • 0.25% annual advisory fee for automated investing Vanguard • $0 for self-directed investing • $100 for automated investing • $3,000 for mutual funds • $0 for self-directed investing • 0.20% to 0.25% annual advisory fee for automated investing • 0.09% average annual expense ratio for mutual funds Fidelity • $1 for self-directed investing • $10 for automated investing • $0 for self-directed investing • 0% to 0.35% annual advisory fee for automated investing

💡 Expert tip: If you’re new to investing, start with micro-investments of $1 to $10 through platforms like Acorns, SoFi Invest and Wealthfront to build good habits, then graduate to traditional brokers like Vanguard or Fidelity as your portfolio grows. Some micro-investing platforms, including Acorns, even round up your debit card purchases to the nearest dollar and invest the difference, making investing automatic and painless.

Here’s what different recurring investment amounts can get you:

$1 to $5 — fractional shares of stocks or ETFs

$50 to $500 — a diverse portfolio of fractional shares across multiple stocks and ETFs

$1,000 or more — access to most mutual funds

The key is consistency, regardless of the amount you begin with. This simple approach, known as dollar-cost averaging, is a tried-and-true way to build toward your goals and mitigate risks. “Your investment strategy should reflect your unique goals and risk tolerance, not just how many dollars you have to invest,” says Marcel Miu, CFA, CFP and founder of Simplify Wealth Planning in Austin, Texas.

Learn more: Saving vs. investing: How to choose the right strategy to grow and protect your money

Myth #2: “You need years of experience before starting to invest”

Modern investment platforms have transformed buying assets into a straightforward process that doesn’t require an economics degree or years of market experience. Today, investing is as simple as placing an order online.

These platforms give you access not only to stocks but also to various broad market funds that automatically invest in hundreds or even thousands of companies at once. This means you don’t need to be an investment expert to benefit from the market’s growth, as these funds allow you to tap into the stock market with minimal effort on your part.

🎯 Research shows that most new investors find trading easier than expected

The perception that investing requires years of experience keeps many people on the sidelines. However, research from Commonwealth, a nonprofit focused on building financial security, tells a different story. Of 800 new investors surveyed, as many as 71% said they found investing easier than expected once they started, revealing that hands-on investing experience, even with small amounts, can quickly overcome the feeling that investing is too complex to try.

Modern investing platforms have noticed this trend, too. Many now offer built-in educational tools and features that explain concepts in plain language as you go. In fact, 67% of new investors used these educational resources, with 85% finding them helpful for learning key investing terms and concepts, according to Commonwealth.

Some of the most popular broad market funds that you can use to dip your toes into the stock market include:

Fund What it tracks Annual fee VOO S&P 500 (500 largest U.S. companies) 0.03% FZROX Total U.S. stock market 0.00% VXUS International stocks 0.05% VT Global stock market 0.06% SCHP Inflation-protected bonds 0.03%

💰 How to invest in a market fund

Just like adding items to your online shopping card, investment platforms let you buy fractional shares of these funds and more with a few clicks:

Open your investment platform or app Search for a fund you want — like VOO for the S&P 500 Enter a dollar amount — even $5 works with fractional shares Review your order details Place your order, and you’re done

You can even set up automatic weekly or monthly investments. Your chosen amount gets invested automatically on schedule, helping you grow your portfolio without requiring constant attention.

This broad market fund approach has historically provided steady returns for investors, regardless of their experience, while spreading their risk across many companies and industries.

📈 How to build wealth through simple habits

When placing your first order, you can begin developing good habits instead of focusing on mastering complex strategies. Follow these tips from successful long-term investors:

Start small and stay consistent. Rather than trying to time the market, set up automatic monthly investments — even $50 or $100 at a time adds up.

Keep it simple. Begin with a few broad market funds that give you instant diversification before exploring other options.

Focus on costs. Choose low-fee index funds over actively managed ones since fees eat into your investment returns over time.

Ignore short-term noise. Daily market news and temporary swings don’t matter when you’re investing for years or decades.

⚠️ A note about risk

While investing has become much more user-friendly, understanding your personal risk tolerance and investment timeline remains important. Broad market funds have historically provided steady long-term returns while spreading risk across many companies and industries. However, all investments carry risk of loss, and past performance doesn’t guarantee future returns. If you’re unsure about managing risk yourself, consider working with a financial advisor who can manage your portfolio for you.

Learn more: How to find a trusted financial advisor to help with retirement planning

Myth #3: “Investing is just gambling with extra steps”

It’s easy to equate investing to placing bets at a casino, considering how movies often portray Wall Street investors. But this misconception fundamentally undermines how markets work. While dramatic scenes of traders shouting on the floor and making split-second decisions make for exciting entertainment, they represent speculation rather than long-term investing.

The reality of successful long-term investing looks much more boring — it’s about owning pieces of profitable businesses and letting them grow over time.

🙋‍♂️ We asked a financial advisor: How is the stock market any different from a casino?

Many people think of the stock market as something that isn’t tangible. However, when you own stock in companies or funds that own stocks, you own the underlying tangible assets. That means buildings, equipment and inventory.

If you walk into a casino and sit at a roulette wheel, you may win for a while, but if you stay long enough, you’ll eventually lose as the odds are in favor of the house. When you put money into a market index like the S&P 500, you become the house. You may lose in the short term, but if you stay long enough, you’ll eventually win.

— Joe Favorito, CFP

Landmark Wealth Management, Melville, New York

This fundamental difference between gambling and investing becomes clear when we look at how each activity actually works in practice.

Gambling Long-term investing House always wins You own actual assets Your earnings are based purely on luck Your earnings are based on company performance Money can disappear instantly regardless of previous wins Historically grows over time even after accounting for recessions Provides no ownership stake Provides partial company ownership Zero-sum game Creates real value

💡 Expert tip: Aim to stay invested for the long run to avoid the effects of short-term volatility. Historical market data shows the power of patient, long-term investing. “The S&P 500 has averaged 10% per year for a century. Yet, the average intra-year decline is -14% before the market ultimately turns positive 3 out of 4 years,” says Favorito.

There are four key differences between the speculative nature of frantic trading you see on TV and in movies versus long-term investing:

Time horizon and goals. Speculation aims to make quick profits by betting on short-term price movements through frequent trading based on market trends or news. Investing builds wealth gradually by owning quality companies or funds for years, letting compound growth work in your favor.

Research and analysis. Speculation chases hot tips and market rumors while relying heavily on technical charts and attempts to time market swings. Investing studies company fundamentals like earnings, debt levels and competitive advantages to identify sustainable businesses positioned for long-term success.

Risk management. Speculation takes on high risks through concentrated trades and leverage in hopes of scoring big short-term gains. Investing spreads risk across various assets while staying focused on steady, long-term returns rather than quick profits.

Value creation. Speculation operates as a zero-sum game where profits come at other traders’ expense. Investing generates real wealth through ownership of productive businesses that create value through products, services and innovation.

The real long-term investing challenge isn’t picking stocks that win big — it’s managing your emotions and staying disciplined during market swings. “Successful investing often hinges on understanding fundamental market principles and maintaining a long-term perspective,” says Miu.

By focusing on solid companies or broad market indexes and staying invested through ups and downs, you’re not gambling — you’re growing wealth systematically over time.

Learn more: 7 best low-risk investments for retirees for steady returns

Myth #4: “Cash is safer than stocks”

While keeping your money in cash might feel safer than investing in stocks, this sense of security often proves misleading. When you factor in inflation — the rising cost of goods and services over time — holding too much cash actually puts your long-term financial security at risk.

💰 What’s the problem with holding too much cash?

The real risk of holding too much cash isn’t that you’ll end up with fewer dollars. Cash enables you to keep the same number of dollars, but the problem is that those dollars will buy less over time.

One of the Federal Reserve’s core goals is keeping inflation at no more than 2% annually using Fed rate hikes and cuts, among other tools. However, historical inflation rates since 1914 average about 3.27% annually.

Assuming the same average for the next 10 years, here’s how $10,000 would grow or shrink in different scenarios:

Average annual return Amount after 10 years Real purchasing power in today’s dollars* Cash (no interest) 0.00% $10,000 $7,249 Traditional savings 0.41% $10,418 $7,552 High-yield savings 4.00% $14,802 $10,729 S&P 500 index fund 10.00% $25,937 $18,801 *Assumes 3.27% average annual inflation

While your bank statement shows the same number or slightly more, your money’s actual value is steadily declining. Even a traditional savings account earning the national average annual percentage yield (APY) of 0.41% wouldn’t keep up with inflation — $10,000 might grow to $10,418 after 10 years but would only buy about $7,552 worth of goods and services in today’s dollars.

Putting your money in a high-yield savings account (HYSA) earning 4.00% APY helps combat inflation while keeping your money secure. That same $10,000 would grow to $14,802 after 10 years but maintain $10,729 in purchasing power. And since these accounts are FDIC-insured, you can’t lose your principal or interest earned up to $250,000.

Meanwhile, investing your money in an S&P 500 index fund has historically provided the best protection against inflation, with average annual returns around 10%. You could turn $10,000 into $25,937, or $18,801 in real purchasing power after 10 years — though unlike savings accounts, stock investments can lose value and aren’t guaranteed to match historical returns.

That’s why the definition of “safe” depends heavily on your goals. Here’s how you can think about it:

Emergency funds. Keep three to six months of expenses in an easily accessible high-yield savings account for immediate needs and unexpected costs.

Short-term goals. Use cash equivalent investments like certificates of deposit (CDs) and government bonds for money you’ll need within two to three years, like a home down payment.

Long-term wealth. Invest money you won’t need for five or more years in stocks or stock funds to help combat inflation and grow your purchasing power over time.

Learn more: How much should you have in your 401(k)? Compare your balance to others by age

Myth #5: “High risk means high rewards”

This myth has led many people to chase trendy but volatile investments after seeing others profit, only to buy at peak prices and potentially suffer significant losses. From meme stocks to cryptocurrencies, the desire to replicate someone else’s investment success often clouds judgment and ignores fundamental investment principles.

🙋‍♂️ We asked a financial planner: Why do people rush into risky investments?

Fear of missing out (FOMO) plays a huge role in many people’s investing attitudes. This often leads to investing too much in risky assets and sometimes selling them too early to avoid significant losses. This emotionally charged cycle can have life-altering consequences, similar to gambling addiction.

Successful investing for the long term has always been best characterized as a “steady as you go” model focused on discipline and consistency — very much like the long-term benefits of going to the gym. There is very little room for FOMO. If you need to satiate the FOMO beast within you, commit only a very insignificant percentage of your net worth to your speculative investment interests.

— John Gillet

Gillet Agency, Hollywood, Florida

Beyond FOMO, several psychological biases and money mindsets influence investment decisions, often leading to choices based on emotions rather than logic, including:

Anchoring bias. Investors often fixate on a specific reference point, usually a past price, when making investment decisions. For example, seeing Bitcoin once reach almost $110,000 might make today’s $97,000 price sound like a bargain, even though that past price may have been inflated by temporary market euphoria.

Sunk cost fallacy. Many investors hold on to losing investments simply because they’ve already invested significant money, time or emotional energy into them. While broad markets historically recover over time, certain individual stocks or cryptocurrencies might never return to their previous highs.

Recency bias. Many investors give too much weight to recent events and assume they’ll continue indefinitely. During bull markets, the possibility of downturns gets ignored; during bears, the market seems like it will never recover. This leads to buying high out of optimism and selling low out of fear.

Confirmation bias. After making an investment decision, many investors actively seek information that supports their choice while dismissing contradictory evidence. This might mean joining online communities that share bullish views on a stock or crypto while ignoring legitimate warnings about risks.

Here is how several popular high-risk assets have performed since reaching their peaks:

Asset Peak price Current price* Decline Bitcoin (BTC) $112,509 $104,795 -6.9% GameStop (GME) $81.66 $29.45 -63.9% Peloton (PTON) $167.42 $7.41 -95.6% *As of June 6, 2025 — prices illustrate the volatile nature of these assets, regardless of the performance they can offer

⚠️ Reality check: As Joe Favorito, CFP, puts it, “The market is the only place where nobody wants to buy when it’s on sale, and everybody wants to buy when the sale is over.” The key isn’t finding the next big winner — rather, it’s about building a diversified portfolio that matches your risk tolerance and time horizon. High-risk investments might have a place in your portfolio, but they shouldn’t dominate it. Make sure to keep most of your investments in broadly diversified, lower-cost mutual funds or ETFs.

Learn more: 8 common money mindsets holding you back — and tips for breaking through the biases

How to choose an investment platform that fits your needs

Selecting the right investment platform can help you navigate the stock market with ease while aligning your investments with your financial goals. While no platform can provide a guarantee of future results, understanding key factors like fees, asset class options and risk of loss can guide your investment strategy.

Consider these key factors when choosing an investment platform:

Account fees and minimums. Prioritize platforms with low minimums and fees, especially if you’re starting small. Platforms like Acorns and SoFi Invest charge small membership or advisory fees for managing your portfolio for you. However, if you prefer doing it yourself, consider opening a $0 commission self-directed account.

Investment options and allocations . Look for a platform that offers access to diversified asset classes, including fractional shares, mutual funds, ETFs and even Treasury securities.

User experience and tools. Choose a platform with an intuitive interface that simplifies investing and tracking your portfolio’s performance. It’s a plus if the platform you choose also has market analysis tools and educational content.

Account types and flexibility. Find a platform with the right account types for your goals — retirement accounts (IRAs) suit long-term growth, while taxable accounts align with short-term needs. Some platforms also offer bank accounts for seamless transfers.

Client guidance and support. Choose a platform that offers financial planning tools or access to a financial professional. For instance, SoFi Invest provides free consultations with an investment advisor.

Learn more about investing and growing your wealth

FAQs: Investing and your money

Find out more about how to start investing and grow your wealth and explore our growing library of personal finance guides that can help you save money, earn money and grow your wealth.

Is $1,000 too little to invest?

No. Starting with $1,000 is more than enough to begin investing. With most brokers offering fractional shares and commission-free trading, you could invest in a diversified portfolio of ETFs or use a robo-advisor to automatically manage your investments. Even setting aside $100 per month into broad market index funds can help you benefit from the stock market’s growth.

What are the best stocks to buy as a beginner?

It’s difficult to tell which stocks are best for beginners as the best performing stocks today may include overvaluation risks or react strongly to company earnings. Rather than picking individual stocks, consider starting with low-cost index funds that track the broader market, like S&P 500 ETFs. These funds instantly give you ownership in hundreds of major companies while spreading your risk. You’ll avoid the stress of choosing individual stocks while historically earning solid returns.

What happens to my investments accounts when I die?

The transfer process depends entirely on how you’ve structured your investment accounts. With proper planning, your investments will not get stuck in probate — a court process that often takes months to distribute assets. Establishing designated beneficiaries or joint ownership now would allow your loved ones to become the owners of the account quickly and skip the court system. Learn how to protect your family’s assets in our guide to investments and estate planning.

What’s the safest place to put your money?

High-yield savings accounts and certificates of deposit (CDs) offer the best combination of safety and returns for money you can’t risk losing. These accounts are protected by FDIC or NCUA insurance for up to $250,000 per bank. While they historically don’t match stock market returns, they can still help your money grow while taking on little to no risk.

Editorial disclaimer: Information on this page is for educational purposes and not investment advice or a recommendation to buy any specific asset or adopt any particular investment strategy. Independently research products and strategies before making any investment decision.

Sources

Consumer Price Index, 1913 to Now. Federal Reserve Bank of Minneapolis. Accessed on June 6, 2025.

Transforming Investor Identity. Commonwealth. Accessed on June 6, 2025.

About the writer

Yahia Barakah is a personal finance writer at AOL with over a decade of experience in finance and investing. As a certified educator in personal finance (CEPF), he combines his economics expertise with a passion for financial literacy to simplify complex retirement, banking and credit topics. He loves empowering people to make informed financial decisions that improve their everyday and long-term wellness. Yahia’s expertise has been featured on FinanceBuzz, FX Empire and EarnForex. Based in Florida, he balances his love for finance with freediving, hiking and underwater photography.

Article edited by Kelly Suzan Waggoner

📩 Have thoughts or comments about this story — or ideas on topics you’d like us to cover? Reach out to our team.

One of the frequent sustainable investing myths is that it generates lower returns. Years of performance data now shows that sustainable strategies often perform in line with – or in some cases, outperform – a traditional benchmark as shown in the chart above. Here are some reasons why:

Extensive data, corporate disclosure and regulatory reports give investors new insights into how well companies are managing environmental, social and governance (ESG) concerns. When done right, focusing on key ESG issues can potentially lower investment risk. ESG factors such as human capital management and land use could have significant effects – both positive and negative – on a company’s business model.

Sustainability megatrends can impact the economy and society, as well as profitability. A relevant example is the clean energy transition, which includes wind and solar, smart grids and energy storage. The most recent estimates found that clean energy added around USD 320 billion to the world economy, representing 10% of global GDP growth. For scale, that’s more than the value added by the global aerospace industry or the economy of the Czech Republic.

Myth #2: Sustainable investing excludes things from my portfolio and only focuses on the environment

Fact: There are many ways to invest sustainably.

Different approaches to sustainable investing can help you better align your portfolio with your goals – and you can go beyond divesting or environmental concerns.

Climate change is a focus for many sustainable investors. However, social and governance issues – the S and G in ESG – are top of mind as well. Arguably, every investment should focus on the G – sound governance practices are critical to the long-term success of businesses. And social issues like employee wellbeing are increasingly more important to investors.

If you’re interested in bringing personal values to the forefront, divesting from business practices like tobacco or firearms might be a viable option. For those concerned about long-term risks like climate change, you may want to consider ESG factors in your portfolio or investment strategy. It’s also possible to invest in certain environmental and social themes (think water or gender diversity) or focus on generating a positive impact alongside financial returns.

Remember that sustainable investing can vary in approach from manager to manager, just like any other investment. Portfolio managers often choose certain factors or opportunities to emphasize based on their investment thesis, and sustainable investing is no different. Work with your advisor to build a sustainable investing portfolio that meets your individual needs.

Myth #3: Sustainable investing doesn’t drive real change

Fact: It has, and it can. You can have a voice through active managers and corporate engagement strategies.

Companies often have a global influence, sometimes for the better (e.g., by being a good employer) and sometimes for the worse (e.g., by polluting a local ecosystem). It’s possible to sponsor specific causes through your investments and potentially impact company behavior.

Let’s dive deeper with a real-life case study. An investment manager holds a leading U.S. manufacturer of cement in its sustainable portfolio. However, it is the portfolio’s significant carbon emitter. Manufacturing construction supplies is a carbon-intensive process that produces “clinker” – a component in cement – which is responsible for about 60% of total cement-manufacturing emissions.

After engagement from the investment manager, the manufacturer has taken steps to decarbonize its operations by:

Increasing use of alternative fuels

Reducing clinker content

Employing carbon capture, utilization and storage technology

The manufacturer has a 20% carbon intensity reduction goal by 2030 versus a 2011 baseline. To encourage further change, the manager will continue proposing a new science-based emissions target.

This is just one example of how sustainable investing can help drive change. By investing in actively managed strategies that engage directly with companies, it’s possible to drive positive change over time.

Myth #4: Sustainable investing is a passing fad

If you’ve ever spent your Monday morning commute daydreaming about starting afresh with your career, this feature is for you.

Each week in the Money blog, we speak to someone from a different profession to discover what it’s really like. This week we chat to Hannah Rose, a multi-award winning wedding planner and event manager.

You’re not going to be earning a luxury yacht from it… For a wedding coordinator working within a venue, you are looking at around £20-30k, but you can earn higher as a private planner, but this comes with a lot more costs and also long hours, stress and pressure.

If you want to be a wedding coordinator… start in service with a catering company, it’s the best way to learn the flow of a wedding day, basics such as laying tables, and the things that can go wrong.

There are no “breaks” on a wedding day… It’s not all as pretty and glamorous as it seems. It’s long hours, hard work, and stressful at points. You get to the point where you haven’t had time to stop and eat, your feet are aching, and you just need to keep going.

You may also have the nicest couple but… that doesn’t mean their guests are, too.

It’s a complete myth that adding the word “wedding” makes something more expensive… this is highly frustrating for the wedding industry! Everything is quoted on as per our time, and generally, weddings take more time and effort than other events.

The best perk of the job is… menu tastings.

The biggest mistakes couples make is… not putting their personalities into their day and listening to too many opinions. The day is about YOU, so make it about you.

The worst speech we’ve heard was not the content but the length… We once had a father of the bride who spoke for nearly an hour.

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My favourite part of the day… is watching the aisle walk at the start of the ceremony, or seeing the couple dancing together at the end of the night, having the best time – makes it all worth it!

Our hours are all over the place… In winter, when there are generally less weddings happening (our weddings tend to take place May-September), you tend to do more office hours, and have more weekends available. In summer, you are working up to six days a week to fit in admin and the physical wedding days. Wedding days are generally 8/9am start, 1/2am finish.

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It’s not just about the wedding day… You have to work through couples’ requests, take meetings with couples and suppliers, site visits and tastings. We also spend a lot of time managing the business, such as blogs, maintaining the website, social media, and many other tasks to grow the business, along with networking to make sure we always have a solid network of amazing suppliers for our couples.