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The period that would take to double your money depends on the returns expected from the investment option. This top investment option in India offers dual benefits of insurance and market investments, which helps you systematically grow your money. You can choose the most suitable policy tenure based on whether you prefer long term or short term investment options.
I have explained all the different types of investment plans available in India. One is starting early and the other is keep on reinvesting over a long time period, say 10 years to 20 years. We have heard the word compounding right from our school days. But very few have effectively used the power of compounding for long term wealth creation. You might be surprised if you let the magic work over a period of time.
Direct Equity
After this loss, I reflected on my personal financial goals. I also read a lot of books on investing and realized that targeting unrealistic returns is foolish. Also, putting all the money in one investment is also https://1investing.in/ not wise. In the world of the stock market, every investor comes with the dream of making huge profits. NPS Scheme C, Scheme G of Tier II account are giving on an average 11.5% returns in the one year period.
MAX LIFE CRITICAL ILLNESS AND DISABILITY RIDER (UIN- 104B033V01) available as a rider on payment of additional premium. Also, bond prices are inversely proportional to the offered interest rates. It means that these price fall when interest rates increase and vice versa. Can be the difference between meeting or missing your financial goals. Remember please that this Rule of 72 just provides an approximate idea and may not always be 100% accurate. But its still a useful dirty little thumb rule to keep in mind.
With funds like Canara Robeco Bluechip Equity, Axis Bluechip and Kotak Bluechip Fund delivering 2 years return in the range of 15% to 19%. As an investor, you would always want to know about the performance of your investments and how well they are growing. You would also be curious to know by when your investments would exponentially grow and double themselves. If you thought that this involved a series of technical processes involving stock market tracking, you are completely mistaken. It is an easy formula which will tell you how soon your investments would double at a certain rate of interest. For those looking to get higher returns on their savings, here’s a list of the best investment options for you to make your wealth grow.
- You can consider the short term investments to fund goals in the near future, whereas long-term investments for milestones such as retirement.
- Now, if you had to withdraw your investments before their maturity, you would have to pay a certain penalty.
- Checking if your investments are in-sync with your short-term goals and emergency needs is essential.
- A 3-year timeline is the most looked at to measure the long-term returns.
- NRIs can invest in Equity, Mutual Funds, Bonds, Fixed deposit, Certificate of Deposits, Real Estate and NPS.
Non-banking financial companies and Corporates offer higher interest rates for non-convertible debentures and corporate deposits, as against fixed deposits of banks. The rate of return for these deposits is kept around 8 to 11%, based on ICRA ratings and tenure of the deposit. It will take around 7 to 9 years for the money to get double in this scheme.
NPS
Investment assets are focused on generating returns by taking a certain amount of risk. Whereas insurance is for the protection of life and assets in case of loss and death. But you can rely on an easy formula to estimate the amount of time taken for your money to get doubled.
All investments will compound over time if you stay invested. How about a person who just has only one – say bank FD alone for several years compounding but right now sitting on big corpus wants to diversify his port folios and expand his wealth? This is because you get an extra time period of 20 years for the money to get compounded. In a way, compounding, helps you build a large corpus over a period of time even with a small initial investment. For example, an individual fresh at a plush job would not mind losing Rs. 25,000 on equity investment.
Investments in the bond can be done through AAA rated bonds by PSU, Govt. NSC is a low risk, fixed income instrument that can be easily opened at any post office. National Savings Certificate comes with two fixed maturity periods of 5 years and 10 years. Over the years, investment in gold has given consistent returns of around 10% beating inflation and providing diversification.
There are a lot of tax benefits if you take home loans under Section 80C and Section 24 of the Income Tax Act, 1961. However, often investors tend to compromise on returns to offset tax. If you were to choose to invest in Bajaj Finance Fixed Deposit, you could earn high returns that offer higher savings compared to tax-saving instruments. Thus, it is essential to make an intelligent choice that offers higher savings on your deposits.
Since this gives you a quick way of calculating your returns, you can plan properly and bring a good structure to your financial goals. When a company offers its shares to the public for the first time, it is known as an IPO. It is important to understand the fundamentals how to double your money in india and future prospects of the company before investing in it. Investors in IPOs of strong companies like Infosys have multiplied their initial investment several times. An investment plan should break your financial aspirations and necessities into time-bound goals.
When it comes to short term investments, liquid funds are the one of the best investment options in India. You can invest in it for 3-5 years and withdraw money as per your requirement for fulfilling your short term goals. They are less subject to market risks than mutual funds, which also makes it one of the best investment options.
How to use Fintra’s Double Investment Calculator?
Therefore, your principal amount needs to be secure from risks. Long term debt investments can generate steady returns over inflation. The investment in residential real estate generates regular rental income and appreciation with a modest amount of risk as compared to equity investments. There are numerous benefits when you invest in ELSS like tax savings, higher returns (15% to 18%), option to invest monthly and can be started with as low as investing Rs. 500. Mutual funds are the most convenient way of investing in the stock markets when you do not have the time and expertise. All the equity investments carry higher risks and therefore capable of generating very high returns.
Your risk appetite for investments considerably declines as a senior citizen. Therefore, the risk profile is one of the most important factors when selecting the best investment options for senior citizens. Prudent investments help secure your life financially by achieving your financial goals for the present and the future. Investing helps you to generate a parallel stream of income, create more wealth, and earn returns to beat inflation. It ensures that you lead a comfortable life even after retirement when your regular income stops.
Safer Methods Of Doubling Your Money
Bank Fixed deposits are the most common household name as far as investments are concerned. Bank Fixed Deposits provide returns of around 8% to 9% with a different and higher percentage for senior citizens. NPS investments do not have guaranteed returns as they invest in market-linked instruments. However, considering the unique tax benefits and its potential to generate inflation-beating returns, NPS is still one the best long-term investments in India right now. In other words, bonds are fixed-income investment options that cover the loan made by an investor to a corporate or governmental borrower.
Thereby PPF is one of the best investment options available. As per Section 80C of the IT Act 1961, you can avail tax deductions for your contribution towards the PPF account. Fixed deposits, Provident Fund and small savings accounts are safe instruments providing moderate returns. If you are a salaried person, you can opt for voluntary PF in addition to the employee PF.
For using Fintra’s Double Investment Calculator, simply enter the Investment Amount and Annual Expected Return. The best investment option would depend on your financial objectives. The best rate of return for you would be the one that would help you realise your long-term and short-term financial objectives. You need to choose the right equity fund, invest in a disciplined way, be patient, and remain invested for the long term to make money. National Savings Certificates at 6.8% interest rate will take 10.5 years to double your investments.
