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How to Double Your Money

What would it make you feel like if the money you invested doubled in value? It sounds too wonderful to be true, doesn’t it? There are various factors that might cause money to double. But don’t anticipate any kind of durational magic here. The duration is determined by dividing the annualized returns by 72, according to Thumbrule 72.

Some ways for doubling the funds you have are as follows:

Tax-Exempt Bonds

Tax-free bonds were initially issued at certain times. The Government has, however, allowed a few state-run organizations to make available these bonds for Rs 40,000 crore. The PFC and NTPC exempt from tax bonds are already in great demand. For the 2015 series, based on the duration, the interest rate or tax-adjusted return given by tax-free bonds ranges from 8.20% to 8.50% per year. In about 8 to 9 years, making an investment in this kind of bond can double your money.

Kisan Vikas Patra (KVP)

Despite being declared inactive in 2012, Kisan Vikas Patra (KVP) has been reinstated in 2015–16. The policy was put on hold since the programme had no control over the money sources invested in it and anybody could purchase a plan from KVP. Although new rules state that in order to make an investment in the Kisan Vikas Patra plan worth Rs 50,000 deposited in cash, a PAN card is required, With KVP’s current annual interest rate of 8.70%, the invested money will double in value in around 8 years.

Non-Convertible Debentures (NCD)/Corporate Deposits

There are several investing opportunities that may double the money. Business investments are one of them. In comparison to bank fixed deposits, Non-Banking Financial Companies (NBFCs) as well as corporations provide greater rates of interest for non-convertible debentures as well as corporate deposits. According to the ICRA ratings and the deposit’s tenure, the probability of return for such investments ranges from 9 to 10%. The time it would take for the investment in this strategy to double is about 8 years. Companies offer corporate deposits, whereas NCDs are issued by businesses that also involve NBFCs.

National Savings Certificates

Among the most secure investment alternatives is a National Savings Certificate (NSC), which is granted by the Indian Postal Administration. These certificates feature fixed terms of 5 or 10 years as well as a fixed interest rate that is based on the term. The rate of interest given for NSCs with a 5-year duration is 8.50% annually. For NSCs with a duration of 10 years, however, the rate of interest compounds at 8.80% annually.

Under Section 80C of the Income Tax Act of 1961, National Savings Certificates are exempt from taxes up to Rs 1,50,000. Additionally, there is no TDS applied to the sum received when the plan matures. The ability to get loans is another advantage of investing in NSCs.

Fixed Deposits in Banks

Banks’ fixed deposits are a favourite category of investment for the people. Up to Rs 1 lakh in fixed deposits are guaranteed by the Reserve Bank of India (RBI). Following the latest RBI repo rate decrease of 0.50% (0.50 bps), a number of banks have reduced interest rates for fixed deposit accounts by 0.25% to 0.50% annually. It might take between 8 and 9 years to double your money by making an investment in a fixed deposit at any bank.

Public Provident Fund, or PPF

The Public Provident Fund, or PPF, is another popular and reliable investment scheme provided by the Government. In order to invest in PPF, a minimum deposit of Rs 500 per annum is required. The lock-in period for this scheme is 15 years. Being the lowest contribution when compared to other savings schemes, a salaried, self-employed, or government employee can invest in this plan. The rate of return is offered at 8.75% per annum, effective for that respective year of the fund. The maturity amount will double in around 8 years, with the money increasing in multiple folds at the end of the lock-in period.

MFs, or Mutual Funds

There are a number of mutual funds, including, to mention a few, ELSS (Equity Linked Savings Scheme), debt- or equity-focused, balanced, or hybrid mutual funds. Mutual funds provide a greater rate of return than other alternative investment tools, although they do have market risk. The duration of the investor’s selected mutual fund affects the rate of return. Rates of return for long-term mutual funds range from 12% to 15% annually. It will take around 5 to 6 years to double your money with mutual funds.

Gold ETFs

In India, gold is a highly desirable metal. This yellow metal is a fantastic investment option. Exchange-traded funds (ETFs) for gold were introduced in India in 2002. It is one of the simplest ways to invest in precious metals and offers an annual return rate of 22%. Gold ETFs give a 22% CAGR over a period of five years, which indicates that the investment will double in three to four years while being very volatile and dependent on the stock market’s performance.

Stock Exchange
Stock market investments have historically resulted in strong rates of return. In the past ten years, a 15% annualised rate of return has been seen in the stock market. Blue-chip investments have the potential to double your money in three to five years. To minimise risks, it is necessary to understand the fundamentals and technical aspects of the manner in which the stock market operates.

A number of the ways to double your money were described above. According to the investment’s duration and risk tolerance, an appropriate investment choice should be made. Long-term investments are preferred since they have a solid probability of growing your money by doubling. But before making any financial choices, always contact a professional.

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