Srinagar, May 9 -- In the realm of financial planning, understanding the power of compounding is fundamental. It's the principle that augments your investments over time, turning modest sums into substantial wealth. As investors, we often overlook the profound impact that varying rates of return can have on our savings. To illustrate this, let's consider how an initial investment of 1 lakh grows over 20 years at different annual compounding rates (1 lac initial investment one time).

- At 7% annually, the investment grows to 3.86 lakhs - a 3.86-fold increase.

- At a 10% rate, it balloons to 6.72 lakhs - 6.72 times the initial amount.

- With a 12% return, the figure jumps to 9.64 lakhs, nearly 9.6 times higher.

- A 15% rate propels it t...