Know Some Simple Ways To Double Your Earning
Published On Dec 20, 2021 10:00 AM By InsuranceDekho
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Investing to double your money can be done securely over several years or rapidly, though individuals who are impatient are more likely to lose most or all of their money.
Option investing, buying on margin, and employing penny stocks are all examples of speculative ways to double your money.
However, doubling your money is an attainable goal that every investor should strive towards. In general, there are five options for getting there. The approach you choose is mostly determined by your risk appetite and investment schedule.
Investing Schemes To Double Your Income
Here is how you can double your income:
1. National Savings Certificates
National Savings Certificates (NSC) are one of the safest investment options available. They are issued by the Indian Postal Department. These certificates have a defined duration of 5 or 10 years, as well as a predetermined rate of interest based on the duration. The rate of interest offered is 8.50 percent per year for NSCs with a 5-year duration. NSCs with a term period of ten years, on the other hand, have an annual interest rate of 8.80 percent compounded.
Section 80C of the Income Tax Act of 1961 exempts up to Rs 1,50,000 in National Savings Certificates. The sum received at the scheme's maturity is also exempt from TDS. Another advantage of NSCs is that they can be used to get loans from any bank.
2. Stock Market
Stock market investments have historically produced substantial returns. In the recent decade, the stock market has returned a 15 percent annualised rate of return. Investing in blue chip firms has the potential to double your money over a three to five-year period. To limit risks, however, it is necessary to have a basic and technical understanding of how the stock market works.
3. Public Provident Fund (PPF)
Another popular and dependable government investing scheme is the Public Provident Fund, or PPF. A minimum annual contribution of Rs 500 is required to invest in a PPF account. This strategy has a 15-year lock-in period. A salaried, self-employed, or government employee can invest in this plan because it has the lowest contribution of all the savings programmes. The rate of return for that year of the fund is 8.75 percent. In about eight years, the maturity amount will have doubled, and the money will have multiplied several times by the time the lock-in term ends.
4. Tax-free Bonds
At first, tax-free bonds were only available for a limited time. However, the government has approved the issuance of these bonds worth Rs 40,000 crore by a few state-run entities. PFC and NTPC tax-free bonds are already in considerable demand. Tax-free bonds give an annual interest rate of 8.20 percent to 8.50 percent, depending on the tenure, for the 2015 series. In about 8 to 9 years, investing in this bond will double your money.
3. Mutual Funds (MFs)
To name a few, mutual funds include ELSS (Equity Linked Savings Scheme), debt-oriented, equity-oriented, balanced, and hybrid mutual funds. Though mutual funds are subject to market risk, the rate of return is higher when compared to other investing options. The rate of return on mutual funds is determined by the duration of the fund chosen by the investor. Long-term mutual funds provide a rate of return ranging from 12% to 15% per year. It will take about 5 to 6 years to double your money with mutual funds.
There are numerous ways to produce money, but not all of them are realistic or can be completed fast. Sure, there are some fantastic forms of passive income, such as blogging or authoring ebooks. However, you'll need to put in weeks, months, or even years of effort to have some of them generate a considerable quantity of recurring money.
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Disclaimer: This article is issued in the general public interest and meant for general information purposes only. Readers are advised not to rely on the contents of the article as conclusive in nature and should research further or consult an expert in this regard.