New Delhi, Sept. 14 -- Your first crore can feel like a distant dream. But once your investment grows, the next crore can arrive much faster. A simple example shows how this happens.

Suppose you invest Rs.30 lakh as a lump sum for 30 years. This means investing the entire amountat the beginning. You add nothing further and make no withdrawals throughout this period. Assume the investment earns 10% annually, with all gains remaining invested.

After the first year, your Rs.30 lakh becomes Rs.33 lakh. You have earned Rs.3 lakh. The following year, returns apply to Rs.33 lakh, including your earlier earnings. Your investment now grows by Rs.3.30 lakh, reaching Rs.36.30 lakh.

This is compounding: your money earns returns, and those returns,...