New Delhi, Feb. 4 -- Investors are often recommended to stay invested in their stocks and mutual funds over a long period of time. This is because it not only allows them to book profits in the medium term but also paves way for wealth creation in the long term.

Being able to earn massive gains on account of being invested over a long period of time in amutual fund or a stock is also known as the power of compounding.

Compounding is lauded - time and again - by the likes ofWarren Buffett andRay Dalio.

In reference to compound interest, Warren Buffett once mentioned that a snowball that rolls down a long hill, picks up more snow as it gains momentum before becoming a massive snowball.

Albert Einstein is also often quoted as saying, "Co...