10 ways to double your money

10 best ways to double your money india

Ways to double your money

An investor keep thinking about the returns he is expecting from a stock market, mutual funds, fixed income investment options, etc. There is another good parameter to look is how he/she can double the money. The period that would take to double your money depends on the returns expected from the investment option. However there is a thumb rule called “Thumb rule 72”.

What is Thumb rule 72?

Thumbrule 72 specifies that an investment period required to double the money would be derived if you divide 72 with the annualized returns you are expecting. E.g. if you are expecting 7% returns, then if you divide 72 / 7 = 10.3 years, it would take 10.3 years to double your investment at 7% returns.

10 ways to double your money

There are various ways to double your money. 

Best ways to double your money – < 3 years time frame: To double your money in 3 years timeframe, you need to get 24% annualized return.

1)   Investing in FMCG sector mutual funds: Currently, there is only one good investment options, which can double your money in < 3 years timeframe. FMCG sector based mutual funds has provided 32% annualized returns in the last 3 years. As per “thumb rule 72” (72/32=2.5 years), it takes 2.5 years to double your money if you choose this as investment option. However past performance may or may not be repeated in the future, hence, an investor need to be little cautious before taking the investment decision.

Best way to double your money – 3 to 5 years time frame: There are various investment options which can double in 3 to 5 years investment time frame. As per thumb rule 72, we should earn 14%, 18% and 24% for 3, 4 and 5 years period respectively to double your money.

2)   Investing in Pharma sector mutual funds: Pharma sector mutual funds have provided annualized returns of 22% in the last 3 years. Investing in Pharma sector mutual funds can double your money in 3.5 years (thumb rule 72/22= 3.5 years)

3)   Investment in gold ETF’s: Investing in Gold ETF’s have provided 22% annualized returns, hence even this too takes 3.5 years to double the investment. However some investors are little cautious that this should be looked as investment for long-term as there could downside for short term.

4)   Investment in stocks markets: Investments in stock market, have always given good returns in the long term. Stock market gave annualized return of 15% in the last 10 years, hence invest in blue chip stocks would provide scope to double your money in 3 to 5 years time period.

5)   Investment in diversified mutual funds / large cap mutual funds: Investment in diversified or large cap mutual funds has given annualized returns of 12% to 15% in the last 3 years. Your money would be doubled in 5 to 6 years time frame if you choose this as investment option.

Best way to double your money – 6 to 8 years time frame: To double your money in 6 to 8 years timeframe, we need annualized returns of 9% to 12%.

6)   Investment in company NCD’s/bonds: Investment in corporate bonds/NCD’s would provide annualized returns from 10% to 13%. Your investment would be doubled in 6 years time frame. However choose a good NCD’s where capital is protected. Investing in SECURED NCD or bond (e.g. Shiriram NCD), would be a good investment option.

7)   Investments in corporate/company deposits are offering 10% to 13% annualized returns; hence investing in such deposits would double your money by 6-7 years time frame.

8)   Investment in debt mutual funds: Investment in debt mutual funds has yielded annualized returns of 8% to 11% in the last 3 years. To double your money, it would take 6-7 years time frame.

9)   Investment in Bank fixed deposits which are offering 8.5% to 9.25% interest rates. Hence investing in such bank fixed deposits would make your money double in 8 years period.

10)  Investment in bonds: Investment in Govt. bonds yields 8%+ returns. You can double your money in 9 years time frame.

Conclusion: There are various best investment options to double your money. Based on the risk appetite and the investment time frame, choose a good investment option. Choosing an investment option for long term would provide a chance to double your money faster. However investment in mutual funds and stocks are risky and past performance may or may not be repeated in the future, hence, an investor need to be little cautious before taking the investment decision.

Readers, have you invested your money with such “best ways to double your money” investment options? Please give your comments

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Suresh
Myinvestmentideas.com – Best ways to double your money

Suresh KP

103 comments

  1. Hi Suresh,

    Its really good to have financial adviser online with the valuable advise for the safe investments.
    I have 30 Lacs to invest possible to make it 1cr in the span of 8 yrs seeking your valuable advise.

    if possible to contact you may pls share your Mob no.

    1. Hardeep, You should invest in liquid / debt fund and do STP to equity and balanced funds over a period of 10 months to 12 months. Then you can wait for 8-10 years to get good returns.

  2. Dear Suresh,

    Iam 52 yrs old .I have opted for VRS from my service in Bank.
    I will be getting pension after VRS.
    Kindly sugest investment options of my retirement benefits of about 10 to 12 lakhs so that my monthly income including pension will remain same as when i was in service. Iam looking for a return of about Rs 10000/- from my investments.

  3. Hello Sir

    I'm a 28 yr old working woman based in UAE and looking to invest my savings to earn 1 crore by the time I'm 40(in the next 12 years). My priority investments for the long term include having a bank balance of 1 crore and saving a lumpsum for a flat in Cochin. Iam able to save Rs.48000 per month.

    Could you please advise the best way diversify my investment in mutual funds?

    I'm looking for an investment options which yields compound interest. My research and your article suggest that the Kerala Transport Development Financial Corporation – Money Multiplier Scheme will be a good investment option. I plan to invest 1 lakh for 10 years, could you tell me how much will it yield in 10 years??

    Also could you advise how i can achieve my long term targets with a monthly investment of Rs 48000 to Rs 50000.

    1. I may not be able to tell you maturity amount of KTDFC as it depends on interest calculatons, regd your other query, best way to grow your money especially for NRI’s is to invest in NRE FDschemes + large cap funds + small cap + balanced funds. Invest in these funds. 1) Large cap – HDFC Top-200 / ICICI Pru focussed blue chip fund 2) Mid-cap – HDFC Mid-cap opps fund / Franklin India smaller co’s / SBI Midcap fund 3) Balanced – You can check HDFC Prudence / ICICI Balanced fund. 

  4. Hi Suresh,

    I am investing 24000 Rs per year in Kotak Mahindra Advantage Plan since 2008. It is a 15 year plan and they locked my first premium and will be received only after completing 15 years. Should I continue till end or just stop paying more? Reply would be much appreciated.

     

     

    1. Hi OK, Even this is market linked plan. I would personally stay away from such plans. Check what you would get after 15 years if you exit now. If you are going to loose huge money, you can take call and exit.

  5. Hi suresh,

                 How are you?How to invest money in Hordings and bill borads?Do u have any idea about it?If yes please Explain me i heard that it is good investment.

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