New Delhi, June 12 -- If you invest small amounts consistently over a long period of time, it can grow to a large corpus. The returns earned over a long tenure are generally disproportionately higher than what you earn over a short period. This happens because of compounding.

This happens because the returns earned in the first few years are added to the principal. Therefore, the returns are delivered on this inflated sum, giving an extra edge to the returns in the later years vis-a-vis initial years.

We demonstrate thepower of compounding here by handpicking one mutual fund scheme:Parag Parikh Flexi Cap Fund.

If you were investing Rs.10,000 every month into this scheme for the past one year, it would have grown to Rs.1.25 lakh by inve...