Double your money with these five tried & tested strategies (2024)

Earning money and doubling it is something everyone desires. People always look for ways to invest, hoping to double their money as early as possible. While there are many ways to multiply your money, it mostly depends on risk and time. One might double money in a few minutes in a casino or in trading options or Futures. But these kinds of investments come with a lot of risks, you might lose all your capital in the blink of an eye.

Doubling money needs patience and suitable investment options, therefore, take your time and invest. The return on investment differs from person to person as it is subjected to factors like market conditions, inflation, economic reforms, demand and supply, and others.

It is essential to note that you can’t expect magic to happen to double or triple your money. Thus, we have gathered five strategies to help you in your journey.

Mutual fund: Mutual fund is a kind of investment instrument that gathers money from various investors to invest in stocks, bonds, and short-term debt. There are many types of mutual funds like ELSS (Equity Linked Savings Scheme), debt-oriented, equity-oriented, and balanced mutual funds. Investors buy shares in mutual funds, and each share represents an investor’s ownership in the fund and the returns it gives. Mutual funds offer higher returns on investment than other instruments; however, there is equal risk involved. The returns on mutual funds usually depend on the period of the fund; the longer the term, the more the returns. If one looks at extended time frames, equity mutual fund schemes can double your money in 3 to 5 years, depending on their performance. Similarly, with a conservative risk profile, investing in debt instruments can take up to 10 years to double your money.

Stock market: The stock market is a platform where investors buy and sell shares of companies that are held publicly. Investments in the stock market can certainly give a higher rate of return. An average stock market return is around 10% per annum, based on the S&P 500. Investing in reputed and profitable companies can increase the chances of doubling your money over a certain period. However, it is essential to understand the technicalities of the stock market before investing.

Real estate: Investing in real estate is a traditional way to double the money. For many, it is not an attractive proposition at present, as investing in property requires huge capital. The catch here is that the value of a property can double in 6 to 7 years, and it can generate a regular income in the form of rent. Though a considerable capital investment initially, it will indeed generate rewards in the long run.

Fixed deposits: Fixed deposit (FD) is another form of traditional investment that has been one of the easiest ways to earn good returns. A fixed deposit is a financial instrument that offers investors a higher rate of interest than regular savings account until a fixed term. It is the safest investment option that guarantees returns. Also, the interest remains unaffected by the market, unlike other investment instruments. There is no risk of losing the principal amount too.

National Saving Certificates (NSCs): Like FDs, NSCs are also a traditional form of investment. NSCs are issued by the Indian Postal Department and are considered one of the safest options for investment if you are not a risk taker. These certificates have a fixed tenure and a fixed rate of interest.

We all love to increase our wealth and tend to find ways to double our money. While it depends on the person’s risk-taking ability and time, it is imperative to have a detailed understanding of each investment instrument before investing. Ample opportunities are available to multiply your wealth, depending on your risk appetite, time, and willingness to learn personal finance for a secured future.

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