Do you have a small amount of money to invest? Are you tired of searching for information regarding where to invest and how to double your money? If yes, then keep on reading because you sure aren’t going to regret it.
Doubling your money is a huge achievement. It makes you happier, content, and proud at the same time when you see the numbers in your bank account two times bigger than what you invested. Due to the change in circumstances, this may not be possible overnight as investments need time to double the money. There are investors who can do it successfully in a few months, whereas others need years to double their money.
The main aim of any sort of investment is to get good returns on the invested money. Won’t we all like to have twice as much of our money in the future? It is essential to note that you can’t expect magic to happen to double or triple your money. Thus, we have gathered five strategies to help you in your journey to double your money. So without any further delay, let’s get started!
Investment That Will Keep You Going
Mutual Funds: A balanced mutual fund can double your money in 3 to 5 years, but you need to be patient and prepared for a few ups and downs along the way. A mutual fund allows one to pool funds and invest in a variety of assets. It can be used by investors at different stages of their life cycle, as mutual funds offer a range of investment options suited for investing at every stage. Some of the best investments that give double-digit returns over a period of four to five years include (Equity Linked Savings Scheme) oriented mutual funds.
Tax-free Bonds: Tax-free bonds offer high interest at the rate of return of 8.20 to 8.50 per annum. These bonds were issued by PFC and NTPC in 2015 and had a tenure of 10 years, subject to reinvestment after 5 years. Tax-free bonds are instruments that are rated very low compared to their risk profile but are very popular among taxpayers as they have a high-interest rate offered by the government.
Corporate Bonds: Corporate bonds can be an excellent investment option. One of the most important factors that you should look into is their credit rating. Corporations or governments issue corporate bonds to raise money. These debt instruments have unique characteristics as compared to bank deposits. There are several advantages associated with corporate bonds and FDs, one of the most important being the high return on investment (ROI) you can grab from them if you invest in well-rated bonds. However, caution must be taken while investing in corporate bonds as there are risks associated with them too.
Real Estate: Property is a great way to double your money. In fact, it’s the oldest and most tried and reliable way to do so. Real estate is often considered a non-liquid asset, but in reality, it isn’t like that. It can be sold to generate returns when you need it. There is significant growth potential in this kind of investment. And the value of the property is likely to double over a few years. But one must remember that unlike the stock market -the real estate market is volatile in nature and needs constant monitoring to reach the expected goals. Because of these risks, one should start with a small capital and expand as one gains experience.
Public Provident Fund (PPF): PPF or Public Provident Fund is a decades-old investment scheme offered by the Indian Government which is still as relevant as ever. The PPF scheme encourages people to invest in government saving certificates and offers a very low-interest rate of 8.75% per annum (compounded annually). You may even see yourself doubling your investment amount in 8 years. The rate of return on PPF is guaranteed by the government at 8.7% per year, making it a reasonable choice to double your money in 8 years’ time.
To Summarise
If you’re a beginner investor or someone who has struggled in the past, it can be a difficult task to find solid investments. There are so many investment plans to choose from that it’s easy to feel overwhelmed. But one thing’s certain: you shouldn’t invest only in one area. Instead, keep an eye on everything and “hop” around (wherever you’re most comfortable) in order to balance your portfolio.
FAQs
A stock market is a place where investors can buy and sell shares of companies that are publicly held. Sometimes, this type of investment can give you a better return on your money than other types of investments.
To start investing in PPF accounts you will need a minimum amount of just Rs. 500
If you invest in these deposits, you can expect to earn a return of 9 to 10% from ICRA-rated banks, depending on the term of your deposit. It would take around 8 years for your money to double in value.