New Delhi, March 16 -- One of the key investing mantras to ensure wealth creation is to stay invested in stocks and mutual funds over a long period of time. Wealth advisors often point out that compounding gives disproportionately higher returns on an investment.

This means when you remain invested in an asset class over a long tenure, the return on invesment (ROI) in the later years tends to be higher than in the early years. This happens because the returns generated in the first few years get added to the initial investment, thus letting the base swell in later years.

This spike in corpus on account of tenure is attributed to the phenomenon of compounding. It is so well-known and potent a tool that it is also referred to as 'magic', ...