New Delhi, June 4 -- At the time of investing in a mutual fund scheme, it is common to evaluate the past returns of that scheme. This gives an idea of how the scheme has performed in the past, thus giving an indication of how it may perform in the future. Wealth advisors often point out that the longer you stay invested, the higher the return. This happens primarily on account of compounding.

FromBen Graham toWarren Buffett, almost all experts have lauded the power of compounding. In fact, famous scientist Albert Einstein is believed to have said thatcompound interest is the eighth wonder of the world. This is because the income you earn in the first few years is added to the principal, and when the investment gives return in the later y...