New Delhi, July 27 -- The investment decisions made in your twenties can shape your long-term wealth. A longer investment horizon available to young investors allow them to benefit from the power of compounding and recover from periods of market volatility. But financial experts say that simply investing early is not enough. Building an ideal mutual fund portfolio requires the right asset allocation, diversification and discipline from the outset.

According to Jiral Mehta, Senior Manager, Research, FundsIndia, the size of the first investment matters less than starting with the right financial foundation.

"Time matters more than the size of the cheque," she said, adding that investors should first build an emergency fund covering three ...