Are you a young investor about to start investment? Let me share my experience with you. When I was young, I was in a great hurry to build up my investment portfolio. I figured out that since I had the luxury of a long period ahead of me, I could afford to be aggressive in the field of investment. With this understanding, I invested my money in risky areas and costly growth oriented mutual funds. That was simply a mistake which I realized and repented later. There is a huge risk of your capital getting eroded in these types of investments. In my particular case, when I required money after some period of time, I was left with no other choice but to sell these investments after paying huge penalties.
So what should you, as a young investor, do differently? Do avoid taking risks with your hard earned money. Rather, adopt a conservative approach and focus on saving. Concentrate on building up your savings amount instead of searching for avenues of investment. It is extremely important to build up your capital amount first because that gives you a solid ground for investmentsin future. With a strong capital base, you would be able to meet your immediate and short term financial requirements. When these requirements are comfortably met and you have built a strong capital amount, only then start searching for investment avenues.