Published On: 20 September 2023

Investing is a powerful tool to grow your income and ensure your money is working effectively. However, many individuals are hesitant to invest due to fear and a lack of understanding. A recent study by Lloyds Bank reveals that nearly half of those without investments are unwilling to risk losing money. Additionally, complex financial jargon further adds to the barriers, leaving individuals baffled and hesitant. This article aims to address these concerns and shed light on the importance of understanding key financial terms for successful investing.


Understanding Financial Jargon:
The survey highlights that 38% of people find complex financial terminology to be a significant barrier to investing. Terms like “asset class,” “growth fund,” “gilts,” and “risk appetite” are among the common terms that remain unfamiliar to a considerable percentage of the population. Moreover, even widely used financial terms like “inflation” are not fully understood by 29% of respondents, indicating a need for clear explanations and simplified information. 

The Importance of Financial Education:
A lack of understanding can breed fear and hinder individuals from making sound financial decisions. To overcome this, providing the right support and information is crucial. The study shows that more than half of those polled would be willing to learn the basics of investing if given proper guidance. Simplified instructions and expert help were cited as effective ways to make investing less intimidating. 

Seeking Professional Financial Advice:
To gain confidence in investment decisions, seeking guidance from a professional financial adviser can make a significant difference. A specialist can assess your financial situation and goals, suggesting suitable investment options tailored to your needs. Additionally, they can address any questions or concerns, eliminating intimidation and confusion caused by complex terminology. 

Investing is a valuable means to secure your financial future, but it requires understanding key financial terms and concepts. By providing the information and support people need, we can empower individuals to make informed investment decisions with confidence.  

At Murdoch Asset Management, our team of experts is dedicated to helping you navigate the world of investing. We offer personalised guidance and support to maximise your money and assets.  

If you’re ready to explore investment opportunities and secure your financial future, contact us today.  


Investment Warning  

This article should not be construed as advice, and no investment decisions should be made without first seeking advice.

The value of any investment and the income derived from it can fall as well as rise and investors may get back less than they initially invested. 

You should only invest if you are prepared to make medium to long-term commitment, i.e. for five years or longer, and are prepared to lose money. You should have adequate other reserves to meet your short-term liabilities.

Past performance is not a guide to the future performance of any fund or investment.  

All reasonable efforts have been made to ensure the accuracy of the data provided here, but where information has been provided by third parties no warranties can be given.

Murdoch Asset Management Limited is authorised and regulated by the Financial Conduct Authority.  You should be aware that advice in relation to tax planning and trusts is not regulated by the Financial Conduct Authority and are not covered by the Financial Services Compensation Scheme or the Financial Ombudsman Service.

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