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There are various best investment options to double your money. Based on the risk appetite and the investment time frame, choose a good investment option. Choosing an investment option for long term would provide a chance to double your money faster.
- Investors in this scheme can use their KVP certificate as collateral or security to avail secured loans.
- The proper knowledge of investing fundamentals is a must for getting your money doubled in a short while in a legit way with minimum risk.
- The rate of return at which your money will be double at a given time period.
- As per current rules, only NPS Tier 1 account provides tax benefits and is mandatory.
No worries for refund as the money remains in investor’s account. In the current era, it is not only important to work for money but also to invest it wisely so as to make your money work for you. The recent years have marked a remarkable awareness in people regarding how to manage their finances and to invest. The proper knowledge of investing fundamentals is a must for getting your money doubled in a short while in a legit way with minimum risk. Investing in gold is a very profitable way of getting good returns for your money, even though the returns of gold are highly volatile.
Long term vs Short term FD – Where should you invest?
The time span required to double your money would depend on the returns or interest rate earned on your investments. Obviously, higher the interest or return on your investment, faster will your money double. You can very easily find out the time your investments would take to double your money using a DIY formula called ‘the rule of 72’.
We all ensure that we use this Money for the right purpose so that we can also save for future. We’ve all heard that money makes money, but my dear friend – money does not grow by itself, you have to make it grow. To compute the exact time required to double up your money, divide 69 by the Annual Interest Rate and then add 0.35 to it. Simply divide 72 by the Annual Interest Rate and this is the time it will take you to double up your money. We’ve all heard that money makes money, but my dear friend – Money does not grow by itself, you have to make it grow.
What is the one most effective method for doubling your money?
They have a lock-in of 3 years to allow the fund to grow as no redemptions are allowed. These convert into open-ended funds after 3 years – which means you can sell them and redeem them for use. You can take a call depending upon your goal and the returns you are receiving from the fund. https://1investing.in/ As we discussed, investing in individual stocks in the fastest way to double your money but also the riskiest. You can get double the investment in just a month or sooner but loose money at the same rate. You need to be an expert and have lot of spare money to take this kind of risk.
In this article, we share with you simple formula which will tell you how much time you need to double up your money. This is very helpful for a person like me who is in 20’s and do not have much knowledge about various investment option available. Nice , simple and do able article covering all the gamut of personal investing. Frame your investment goals, define your risk capacity and chalk out an investment plan best suited to your needs. The best would be to put your plan on paper or an excel sheet.
72 is a random number that has been chosen for mentally calculating the values easily. Since it is divisible by many numbers, the value of 72 has been fixed as an arithmetical unit for this rule. If someone invests Rs 10 lakhs or more, then income proof will also have to be submitted, such as ITR, salary slip and bank statement etc. It is a reasonably accurate formula and more so while using lower interest rates than higher ones. It must be noted that any number of accounts can be opened under the scheme. Needs to review the security of your connection before proceeding.
How to double your money? 5 smart ways to multiply your investments fast
And even the location (within and across cities/state) lead to different investment outcomes. So if your question is that what interest rate would double your money in 5 years? The deposit will mature on the maturity period prescribed by the Ministry of Finance from time to time as applicable on the date of deposit. While the scheme matures in 124 months, the lock-in period is 30 months.
There are no quick rich schemes that can double your money overnight. Then on, I started diversifying my investments across different instruments with a target return of 15% per annum. ‘Investments in securities market are subject to market risk, read all the related documents carefully before investing. Interest rates are selected based on the returns on your current investment products. This scheme was started in 1988, back then, its objective was to double the investment of farmers, but now it has been opened to all.
Fixed maturity plans (FMPs)
While investment in mutual funds is subjected to market risk one should evaluate the risk before investing. If you understand the market and its risks, mutual funds can become your best investment options to grow money multifold. Whether you are going for short term investments or long term, you can create an investment portfolio based on your preferences. An investor keep thinking about the returns he is expecting from a stock market, mutual funds, fixed income investment options, etc. There is another good parameter to look is how he/she can double the money.
Foolproof ways to ★ Double your Money ★ Rule of 72
Your risk tolerance, investing time horizon, and personal preferences all play a role. Most individuals benefit from a balanced strategy that includes investing in a diverse mix of shareholder how to double your money in india equities and bonds. Those with a larger risk appetite, on the other hand, may want to invest in more speculative assets while others may seek to double their money via equity brokers.
However, still, it manages to give CAGR of 22% over the past 5 years. This means it will take around 3 to 4 years to double your money. Investing in gold is very popular among Indians, as it is considered to be a symbol of wealth among Indians. This loophole was removed by furnishing PAN CARD for buying KVP in cash of above 50,000.
These instruments are excellent for young beginners with a steady source of income. You can go for pure protection plans like term insurance that provide financial cover to your family in case of your unfortunate premature death. The other option is to go for plans that combine savings with insurance, such as Unit Linked Insurance Plans . Other insurance plans include health plans, critical illness plans and accidental insurance plans. Nevertheless, the huge returns entail high risk, where a bad pick can erode more than 50% of the money. The equity mutual funds have generated consistently higher returns.
Hence, one can calculate and make decisions based on the above method and evaluate the risk and return. The portfolio can mix low-risk and high-risk instruments, depending upon the investment goals set and many other factors. Vice-versa, the “Rule of 72” can also be applied for calculating the number of years that it will take to double your money for others. For example, any gold loan is taken by the lender at an 18% rate of interest. It will take four years for the lender to earn double your money. With an annualized return of around 8%, bonds can help you double your money in a span of around 9 years.
A PPF or a Public Provident fund account is backed by the Government of India and can be purchased at post offices and banks. It has a 15-year tenure, though you can make withdrawals from the 7th year onwards. The principal invested, the interest, and maturity amount are all tax free. The rate of interest is revised every quarter and is based on government bond yields. Fixed Deposit with Banks is one of the most popular and convenient investment option.