New Delhi, March 5 -- Compounding is one of the key secrets of wealth creation. When you invest a small sum in a stock or a mutual fund and keep it locked for a long period, it grows at a fast pace in the later years than it did in the initial years.

This happens because the returns generated in the first few years get added to the principal, thus helping the investment multiply over a long period of time. Almost all the proponents of value investing laud the magical power of compounding. Warren Buffett once said that 'Time is your friend; impulse is your enemy. Take advantage of compound interest and don't be captivated by the siren song of the market.'

To demonstrate the power of compound, we randomly select one aggressive hybrid mutu...