Investment Tips: Wealth creation happens only in the long term and investment gets the power of compounding. Here we are telling about some such schemes, some of which will double the guaranteed money. At the same time, there are risky schemes from the market, in which tremendous returns can be obtained.
Investment Tips: Everyone wants to invest their money in such a place, from where it becomes double, triple. But, there are some questions regarding this as well. For example, where to invest money, where investment will create wealth, will there be risk on investment or not? Such questions are inevitable in thinking of making money from money. One must focus on some basic things regarding investment. For example, what is your investment goal, how is your risk appetite. After that schemes should be selected. Keep in mind that wealth creation happens only in the long term and investment gets the power of compounding. Here we are telling about some such schemes, some of which will double the guaranteed money. At the same time, there are risky schemes from the market, in which tremendous returns can be obtained.
Bank FDs
Term Deposits (TDs) or Fixed Deposits (FDs) of banks are the most popular option for fixed income. Most people in the country prefer bank FDs. Interest is available in the bank according to different tenures. The country’s largest bank SBI is currently offering 6.1 per cent interest per annum on deposits with maturity of 1 year. At the same time, many small finance banks are offering 7 percent or more interest annually.
If you look at the formula of Rule of 72, then at an interest rate of 6.1 percent per annum, your money will double in about 11.80 years. The point is that there is no market risk on your investment. That is, if you want to make Rs 20 lakh by making a lumpsum deposit of Rs 10 lakh, you can easily double your money in bank deposits in 10-12 years without taking any market risk, depending on the current prevailing interest rates in bank FDs .
Kisan Vikas Patra (Kisan Vikas Patra- KVP)
Post Office’s Kisan Vikas Patra scheme doubles investors’ money guaranteed. The government is already offering 7 percent interest on this. Compounding of interest is done on an annual basis. In this post office scheme, your money will double guaranteed in 123 months or 10 years and 3 months. Means, if you invest 10 lakh in this scheme, then you will get 20 lakh rupees in 10 years and 3 months. There is no risk of any kind in the post office scheme.
Mutual Fund
Another powerful way of wealth creation is mutual fund investment. Investment in Mutual Funds is however subject to market risks. The ups and downs of the stock market affect the performance of your fund. If you have the ability to take market risk, then this is the most powerful option to double or triple your money in the long term.
One can invest in mutual funds in lump sum or through SIP every month. If we look at the returns of equity mutual funds in the long term, it has been an average of 12 per cent annually. The returns of many schemes have been more than this. In such a situation, if you invest Rs 10 lakh in a lump sum equity scheme of mutual funds, your money will become Rs 20 lakh in the next 6 years. But, keep in mind that returns are not guaranteed in mutual funds.
(Disclaimer: The details of the schemes, their returns and risks are given here. This does not in any way constitute investment advice. Do your own research or consult your advisor before taking any investment decision.)
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