How much time does it take to double your money?


''21 din mein Paisa Double!" We all know this famous movie dialogue. The word double lures every investor. Most people when start investing all they want is to quickly double their money and many financial institutions take advantage of this. What happens is you become a victim of misselling, invest in wrong schemes and lose your hard-earned money.

So why believe in someone else's words when there is a simple trick to know how much time it will require to double your money. In the world of finance, it is known as The Rule of 72.

If you are thinking of investing in a particular scheme first know how much interest the scheme is offering. Then divide the number 72 by that interest rate. You will get the required years by which that scheme will double your money.

You will be astonished to see that none of the traditional schemes available in the market right now have the capability to double your money in the short term. 
Only traditional scheme Kisan Vikash Patra, a scheme by the post office can double your money in Ten Years Four months at a current interest rate of 6.9%.

Share market or mutual funds have this capability but that investment is subjected to Market Risk. A mutual fund scheme at the rate of 12% can double your money in 6years. But there is no guarantee.

What you should do is give up the idea of doubling and set financial goals based on your needs and time to achieve that goal. You can estimate how much money you will require for that and based on that you can start investing. Various financial calculator-based apps are available on the play store for estimating.

Happy Investing.









©Deep

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