Nithin Kamath advises young investors to follow this plan, reduce market risks

Nithin Kamath on Monday said that the easiest way for youngsters to start building their portfolio would be to begin a fixed deposit in a bank. The Zerodha co-founder and CEO shared this during a conversation with Moneycontrol about money mantra for the young.

"I think they should start off with a bank fixed deposit -- the easiest thing to do," Kamath said. "The thing about saving and investing in mutual funds and stocks is that when people see that some money is being lost, the chances are of people not doing it at all... so my advice is if you're young and don't know about stock market or mutual fund etc."

"The idea is to just start off with a fixed deposit, once you have a certain amount of capital then maybe they can start investing a small portion of it into mutual funds... start a SIP (Systematic Investment Plan). Then they can pick up a low-cost index fund and start investing monthly after," he added.

That way, with a fixed deposit, an SIP and an index fund, the chances of the youngsters getting perturbed by ups and downs in the market would be much lesser, Nithin Kamath said.