How Can I Double My Money?

The ability to enhance your profits by investing is fantastic, but only when done correctly. There are many different investment types available, but seven represent viable sources of substantial income.

Saving money and keeping track of its growth is one of the key reasons we invest. It makes sense to explore for alternatives to double your invested money, though, given the low-interest rates offered by traditional Fixed Deposits. The fact is, to see your money grow, you must take calculated risks. We’re going to talk about nine strategies to quadruple your money.

How to Double Your Money Effectively?

Mutual Funds: Different kinds of mutual funds exist. A few examples include equity-oriented, debt-oriented, and balanced mutual funds. ELSS (Equity Linked Savings Scheme) is another. Despite the market dangers, mutual funds have a greater rate of return than other types of investments. As a result, you might think of it as one of the best ways to double your money.

Additionally, the duration of mutual funds will impact their rate of return. Long-term mutual funds can provide rates of return between 12% and 15% annually. To double your money with these mutual funds might take five to six years.

Corporate Deposits: Corporate deposits are an additional choice that potentially quadruples your money. Unlike bank fixed deposits, non-bank financial firms (NBFCs) and corporations (corporations) provide greater interest rates for corporate deposits and non-convertible debentures. Depending on ICRA ratings and deposit duration, the rate of return for these deposits is maintained between 8 and 11%. The money in this strategy won’t double for about 7 to 9 years. Corporations issue corporate deposits, whereas companies, including NBFCs, issue NCDs.

National Savings Certificates: The National Savings Certificates are issued by the Indian Postal Department (NSC). It is among the safest forms of investment. These certificates have a fixed interest rate and a fixed duration of five or ten years. NSCs with 5 years have an annual interest rate of 8.5 percent. The interest rate on 10-year NSCs is 8.80% yearly. Under Section 80C of the Income Tax Act of 1961, National Savings Certificates are free from income tax up to Rs. 1,50,000. On monies received at maturity, there are no TDS fees. Additionally, NSCs can be used to get loans from any bank.

Gold ETFs: Typically, people adore buying gold. Gold has consistently produced returns of around 10%. To increase the value of your gold investments, you can also purchase gold bonds and exchange-traded funds (ETFs). The Sovereign Gold Bond Scheme is another option for investing. The RBI and the government govern the program. You will be able to own gold using the certificate format. In addition, bonds are valued in multiples of one gram of gold. One gram is the required first investment minimum. You would earn an annual interest rate of 2.5 percent on your investment— the eight-year lock-in term for the investment sum. Your investment in Gold ETFs would double in value after eight years.

Bank Fixed Deposits: Banks’ fixed deposits are a well-liked form of investment. Up to Rs. 1 lakh in fixed deposits are insured by the Reserve Bank of India (RBI). Following the recent RBI repo rate decreases of 0.50% (0.50 bps), several banks have reduced interest rates for fixed deposits by 0.25% to 0.50% annually. It can take between 8 and 9 years to double your money by investing in a fixed deposit at any bank.

Bottom Line

A good investment option should be picked depending on the investment time frame and risk tolerance. Long-term investments are preferred since they have a solid probability of growing your money by double. Before selecting any financial option, always consult a professional.

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