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    5 Smart ways to double your Money Effectively

    Almost everyone desires a rapid money increase. People are constantly looking for investments that will quickly double their money. There are various ways to double your money over a specific period. It’s crucial to remember that you shouldn’t anticipate long-lasting magic in this situation. Money-doubling demands patience; one must search for a suitable alternative or investment in which he can stay invested for a specific period of time. Your money can double if you have patience and the power of compound interest. However, because returns depend on the market, supply, and demand, the instrument that works for your friend could not work for you. Let’s discuss in this article how to double the money in India.

    How long does it take Money to double?

    A well-known method for estimating how long it will take for an investment to double if its growth compounds once a year is the Rule of 72. Just multiply 72 by the estimated annual return. To double your money, you must wait a certain number of years.

    Thumb Rule 72 states that you may determine when your money will double by dividing 72 by the predicted yearly return. Consider that if you invest Rs. 1,000 with a 10% predicted yearly return, your money will double in 72/10 = 7.2 years. Here are the top 5 techniques to quickly quadruple your money.

    5 Effective means to double your Money

    1. Stock Market

    Stock market investments have historically provided people with excellent rates of return. The stock market has provided an annual rate of 15% in the past ten years. The likelihood that your investment will double in value within five to seven years might be increased by investing in large-cap or well-known companies. To minimize financial loss, you have to understand the stock market’s basic and technical components of the stock market.

    2. Mutual Funds

    The market offers a variety of mutual funds, including ELSS (Equity Linked Savings Scheme), balanced or hybrid mutual funds, debt- and equity-oriented, among others. However, because the fund managers invest a pooled amount of money in many businesses or industries, mutual funds carry some risk. However, MFs offer a better rate of return than other types of investments. The fund duration typically affects the return rate for mutual funds. The average rate of return offered by long-term mutual funds is between 12 and 15 percent annually. Due to market risk and volatility, it will thus take 6 to 8 years to double your money using mutual funds.

    3. National Savings Certificates

    The Indian Postal Department issues NSCs. It is one of the safest solutions if you don’t have a big taste for risky investments. These certificates feature a fixed interest rate and a fixed duration of 5 or 10 years. The rate of interest offered for NSCs with a 5-year duration is 8% annually. According to Section 80C of the Income Tax Act of 1961, NSCs are exempt from taxation for up to Rs 1, 50,000 per year and may be used to obtain loans from any bank. Your money can double if you invest in NSC in 9 years.

    4. Corporate Deposits/Non-Convertible Debentures

    Unlike bank fixed deposits, non-bank financial firms and corporations provide greater interest rates for corporate deposits and non-convertible debentures. Depending on ICRA ratings and deposit duration, the rate of return is maintained between 8 and 11%. Corporations issue corporate deposits, whereas companies, including NBFCs, issue NCDs.

    5. Kisan Vikas Patra

    Since Kisan Vikas Patra (KVP) was reorganized in 2015–16, it is now required to have a PAN card to make cash investments into the Kisan Vikas Patra scheme worth Rs. 50,000. Based on statements made by the Finance Ministry, the interest rate that applies to Kisan Vikas Patra may occasionally fluctuate. The current interest rate for KVP is 7.7% annually, and in around 9 years and 4 months, your investment will have doubled. Kisan Vikas Patra is either not covered by section 80C of the Income Tax Act or is fully taxable.

    How can you double your Money?

    Your risk tolerance, investment time horizon, and personal preferences will all be important factors. For most people, a balanced strategy that comprises investing in a diverse mix of stocks and bonds is effective. While some might like to double their money through real estate investments, people with bigger risk appetites could prefer dabbling in more speculative items like small-cap stocks or cryptocurrencies.

    Conclusion

    Everyone does not respond to the same method. Your financial condition needs to be tailored to your risk profile, circumstances, etc. Once you have begun applying the thumb rule, checking your progress and adjusting your approach as necessary periodically is crucial.

    Also Read: Top 10 Cleanest Cities in India of 2022

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    Josie Patra
    Josie Patra
    Josie Patra is a veteran writer with 21 years of experience. She comes with multiple degrees in literature, computer applications, multimedia design, and management. She delves into a plethora of niches and offers expert guidance on finances, stock market, budgeting, marketing strategies, and such other domains. Josie has also authored books on management, productivity, and digital marketing strategies.

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