New Delhi, July 16 -- Investing in a mutual fund scheme can deliver exceptionally high returns if you stay invested for a long time. The returns from the initial years get added actual investment, thus delivering even higher returns in the later years. This is also known as the power of compounding.

Compounding is often lauded by experts and investors alike. From Ben Graham to Warren Buffett, everyone has understood and acknowledged its power. Albert Einstein even once referred to 'compound interest' as the eighth wonder of the world.

This simply means the income earned on the investment in the first year gets added to the initial investment, which inflates the principal for the second year. And when this loop continues for 10 times, th...