In the 1980s, British actor John Houseman said in a series of ads for Smith Barney, “They make money the old-fashioned way—they earn it.” If you do what that commercial says, you can double your money. Investing in a portfolio of blue chip companies and investment-grade bonds is a tried and true way to double your money. This article will go into how to double your money in detail and provide some examples for your convenience.
It looks good and is easy to make twice as much money. This is possible if you have the time and are willing to take risks. In other words, you can double your money without taking any unnecessary risks. Even a portfolio full of low-risk bonds can pay off in the long run.
How to Double your Money?
There is no risk of reinvesting. It is risky to save or reinvest interest payments from ordinary coupon bonds. Bonds that don’t have a coupon rate of interest don’t earn any interest until they mature. Investors who don’t plan to keep zero-coupon bonds until they mature should know that their value could go down if interest rates go up. In this article, we will cover the how to double your money along with equivalent matters around the topic.
Tax-Free Bonds
There was a window of time when tax-free bonds could have been sold. Moreover, the government has given several state-owned companies permission to sell bonds worth a total of Rs 40,000 crore. PFC and NTPC sell tax-free bonds with interest rates ranging from 8.20% to 8.50% per year for the 2015 series, attracting many investors. In fact, money invested in these bonds will double in value between 8 and 9 years.
Gold ETFs
Gold is a popular thing to buy, and many people like to do so. It always gives back 10%. To get more out of your gold investments, you can buy gold ETFs or gold bonds. Moreover, Sovereign Gold Bonds are a good way to put money to work, as the program is run by RBI and the government.
A gold certificate can be used as proof of ownership. Gold grammes are even used to measure the value of bonds. Put in a little bit of work. The interest rate on your savings will be 2.5% per year. A promise is made for the next eight years. The value of gold ETFs has quadrupled in just 8 years.
Real Estate
It also makes any money you invest worth twice as much. A good way to invest money is to rent out your home. Having less tax to pay is one of the benefits of owning assets. Prices for homes could double in about 5 to 7 years. Usually, a lot of money is spent on real estate’s capital costs. Location and the growth of nearby infrastructure have an effect on the return on an investment.
Stock Market
Investing in stocks is a surefire way to become wealthy. Direct stock investments are riskier because you could lose up to 50% of your money. A high rate of return is another thing that makes something appealing. Stock returns for large companies tend to be high (>20%) over long periods of time.
The CAGR for Eicher Motors Limited over the last five years was 28.77%. Your money will double in just 3.5 years! Maintain equity investments with a long-term outlook (five years or more).
Bank Fixed Deposits
People often choose to put their money into fixed deposits at banks in the current market. The Reserve Bank of India protects bank accounts with deposits of up to Rs 1 million. When the RBI cut repo rates by 0.50%, fixed deposit rates at several banks fell by 0.25% to 0.50% per year (0.50 bps). In 8 or 9 years, a fixed deposit at a big bank will double your money.
Achieve Strong Growth Rate
If you have a decent growth rate, you can even double your investment. 50 percent is quite improbable. In the past, the stock market has grown by an average of 10% each year. This rate could speed up or slow down in the coming years, but it would still give an average return of 10% over ten years.
Public Provident Fund
PPF is another government investment programme that people like and trust. The least you can put into the PPF each year is Rs 500. With this plan, you have to stick to it for 15 years. This retirement plan has the lowest costs for all types of workers, including those with traditional 9-to-5 jobs, flexible schedules, and government jobs. For that fund year, the rate being offered is 8.75%. After the first set time, the maturity amount will double and then multiply.
Mutual Funds
Mutual funds come in many different types, including debt, equity, balanced, and hybrid funds. It can give higher returns than other types of investments, but they also put investors at greater risk in the market.
Additionally, how much money you get back from a mutual fund depends on how long you’ve had it. Generally, long-term mutual funds provide a return of 12 to 15% per year, and most mutual funds double in size over the course of 5 or 6 years.
Begin Side Business
To make three times as much money, you need to start a “side hustle” doing something you like to do in your spare time. This could include selling your handwriting, your knitting skills, things you made yourself, or your woodworking skills. You can double your money if you save and invest all of your earnings, as long as you sell your items through social media and marketing and write off the costs when you file your taxes.
Company Fixed Deposit
Companies make fixed deposits, not bank deposits. With a company fixed deposit, your money could be worth more than four times as much in six years, since yields have been as high as 13%.
Corporate Deposits
When you invest, you can often double your money. The businesses put in the money. Nonconvertible debentures and corporate deposits from NBFCs and businesses pay higher rates of interest than bank fixed deposits.
Depending on the ICRA grade and the length of the investment, the return on these deposits is between 9% and 10%. If you do this, your money could double in just 8 years. Corporate deposits and NCDs are made by both banks and non-bank financial companies (NBFCs).
Frequently Asked Questions
How can I Double my Money in 5 Years?
Putting your money into mutual funds is a great idea. A fund rewards people who give regularly to it. Mutual funds are a good choice for people who want to invest a lot of money but don’t want to be responsible for managing their own portfolio.
What is the Best Way to Double your Money?
A well-balanced mix of stocks and bonds gives an investor the best chance of doubling their money. A return on investment of 100% can take years, but investors who aren’t patient risk losing everything.
What is Best Investment for Future?
Direct equity is favoured by investors who want to put their money to work for a long time. When it comes to returns, direct stock funds are the best, even though most investors stay away from them because they seem risky.
Conclusion
What is the best way to make your money back and then some? The best case scenario is to invest a lot of money over a long period of time and see steady growth. A great way to get the same return as the market is to invest in a low-cost, broad-market index fund. Read on to learn more about how to double your money and become the subject matter expert on it. To understand more clearly, keep reading about where to invest money to get good returns.