India, July 8 -- Returns are at the center of most investment discussions. Investors compare mutual funds, stocks, gold, fixed deposits, and bonds">bonds">bonds to understand where they can earn more. But there is one factor that fuels investments even before returns come into play: the savings rate.

The savings rate">savings rate">savings rate is the percentage of income that is saved or invested rather than spent. Since returns are earned only on the money that actually gets invested, a higher savings rate can often have a bigger impact on long-term portfolio growth than a small difference in returns.

For instance, if a person earns Rs.12 lakh a year and invests Rs.3 lakh, the savings rate is 25%. If the same person invests Rs.4.2 lak...