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Tips to Double Your Investments

The most commonly asked question after where to invest your money is how to invest money in order to make more money. Majority investors would love two pieces of pie if they could get it. Who doesn’t want to make more money? With the recent fall of the Indian rupee, expenses are bound to go up. And just figuring out where to invest your money won’t be sufficient. How great will it be if you could double the principal amount of your investment! Here are some investment options where you could buy into to double your investment and thus, make more money.

Where to invest your money to double it?

Before you begin, it is important to know how to invest money. However, if you’re a seasoned investor, chances are you have your own module on how to invest money to make more money. For those who want to learn how to invest wisely, investment journals and portfolio managing experts can have great insights about how to invest and where to invest your money. Here are our recommendations on where to invest your money to double it with little or no risks!

1. Tax-free Bonds: These bonds were initially issued only during specific periods. The government has now permitted some state-run entities to issue these. These tax-free bonds have an interest rate or tax-adjusted return of around 8.2%-8.5% pa. The final rate depends on the tenure. Investing in tax-free bonds can double your money in 8-9 years.

2. Kisan Vikas Patra (KVP): KVP was reinstated in 2016 after being made defunct in 2012. The policy was initially discontinued because there was no restriction on the income source and on who could buy a plan. Under the new regulations, a PAN card is mandatory to invest in this policy which offers a rate of interest of 8.7% pa. Here, your money stands to double in approximately 8 years.

3. National Savings Certificates: NSCs are the most secure option owing to the fixed tenure and interest rate. While NSCs with a 5-year tenure offer 8.5% interest pa, NSCs with 10-year term offer 8.8% interest rate pa. Moreover, you can claim deductions up to Rs. 1.5 lakh on NSC returns. Another benefit is that no TDS is deductible on the amount received at maturity of the scheme.

4. Bank Fixed Deposits: After savings accounts, fixed deposits are the most preferred form of investment. Here, an investor doesn’t require extensive knowledge of trade markets. RBI has insured FDs of up to Rs. 1 lakh. Recently, several banks have reduced interest rates for FDs by 0.25%-0.50% pa. You can double your FD investment in 8-9 years.

5. Public Provident Fund (PPF): PPF is another safe investment option. The principal amount and interest generated are re-invested thereby reducing risks. It requires a minimum deposit of Rs. 500, offers a rate of return at 8.75% pa and has a lock-in period of 15 years.  Also, you can avail tax benefits u/s 80C. The maturity amount doubles in around 8 years.

6. Gold ETFs: Not many have been able to stay away from the allure of the yellow metal. Gold Exchange Traded Funds were launched in 2002 in India. Since we love our gold, this is one of the easiest and smartest ways of investing. Gold offers an annual return rate of 22%. Gold ETFs offer a CAGR of 22% over 5 years. This means your money will double in 3-4 quick years.

7. Mutual Funds (MFs): Obviously, there is market risk associated with most mutual fund investments. However, as compared to other investment options, the rate of returns are also much higher. The return rate depends on the tenure that the investor selects. Long-term MFs offer a return rate of 12%-15% pa. Here, it will take approximately 5-6 years for your investment to double.

As evident, even after you to decide where to invest your money to double it and make more money out of it, you will have to remain patient. On average, it shall take about 6 years for your money to double. The final decision should be made based on your risk profile and time horizon. Our last piece of advice would be to consult an advisor before you choose an investment option.