The interest paid in the savings accounts is far lesser than our inflation. In fact, the fixed deposit interest rate is less than our inflation rate.
So, actually, the value of money parked in a savings account or fixed deposit is getting lower every day.
But no school teaches about money. That’s why the majority of India is far behind in financial education.
High inflation makes people greedy, and they search for schemes that double their investment.
You’re on the wrong track if you are also looking for a scheme that doubles your money in a day, a week, a month, or a year.
Because the financial market is full of scams, you must be careful with your hard-earned money.
Here I’ll explain the power of compounding and various methods to double your investment in a shorter period.
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Best Investment Schemes That Double Your Money
If you want to multiply your money in the short term, then learn to invest. These best investment schemes double your money in a shorter period.
1. Mutual Funds
You must have watched Mutual Funds advertisements on your TV. Mutual Funds are one of the best investment schemes that double your money in 4 to 5 years (depending upon market conditions).
Mutual Funds managers take funds from the public and invest their money in the stock market. As they are experts in stock market investments, you get higher returns.
As your money is being invested in the stock market, hence Mutual Funds investment is subject to market risks.
You can invest in Bluechip and Large Cap mutual funds to minimize the risk.
The average rate of returns from large-cap mutual funds is 12% to 18%. Hence, it takes approx 4 to 5 years to double your investment.
Pro Tip: Mutual Fund investment is risky in the short term; you should invest your money for at least 5 to 7 years. It’s always better to consult with a financial advisor if you have zero knowledge of stock markets.
Average Returns: 15%
Time To Double Your Investment: 5 Years (Approx)
2. Public Provident Fund (PPF)
Public Provident Fund (PPF) is the safest and tax-free investment to achieve medium to long-term financial goals.
Public Provident Fund is a government investment scheme that offers 7.1% to 10% compounding interest rates.
You can start investing in PPF from Rs 500 per year and a maximum of up to 1.5 Lakh per year.
This investment scheme falls under the EEE (Exempt-Exempt-Exempt) category, which means you neither pay any tax on principle nor on the interests.
Considering the tax benefits, you get 12% to 14% returns on your investment.
This scheme has a lock-in period of 15 years, but you can avail loan facility after 6 years on your invested value.
Average Returns: 8%
Time To Double Your Investment: 9 Years (Approx)
3. Bank Fixed Deposit
Bank Fixed Deposit (FD) is India’s most popular investment scheme that all bank offers.
Million people invest in bank FD because it’s safe and gives guaranteed returns.
So, if you don’t want to risk your money, bank FDs are the safest investment option. But, current interest rates are very low (approx 5 to 7% per annum).
Considering the current interest rates on bank fixed deposits, it takes approximately 12 years to double your money.
Pro Tip: You can park your emergency funds into bank FDs and invest surplus amounts in Mutual Funds, the stock market, and other assets.
Average Returns: 6.5%
Time To Double Your Investment: 11 Years (Approx)
4. Kisan Vikas Patra (KVP)
Kisan Vikas Patra is one of the best saving schemes that help build wealth without fear of market risks.
The Kisan Vikas Patra scheme was launched in 1998 by the Government of India to encourage farmers to invest a small amount in the long term to build a decent corpus to achieve their financial goals.
If you fear investing in the stock market and mutual funds, Kisan Vikas Patra (KVP) is the safest investment scheme that double your money in 123 months (10 years and 3 months).
This scheme offers compounding interest of 6.9% per annum. Anyone can start investing in this scheme from Rs 1000 per year. There is no limit on the maximum investment amount.
However, you must submit a copy of your PAN card if the investment amount exceeds Rs 50000.
You can open Kisan Vikas Patra (KVP) account in your nearest Post Office or some public sector banks.
Average Returns: 6.9%
Time To Double Your Investment: 10 Years and 3 months (Approx)
5. Tax-free Bonds
The interest rates of bank fixed deposits have fallen to it’s lowest level. In this scenario, investment in government bonds can give a decent regular income.
The government issues tax-free bonds to raise money for different purposes. It’s a safe and low-risk-free investment scheme that can double your money within a shorter period.
The interest paid by the government bonds is tax-free, and investment is almost zero risk.
You can buy government bonds and generate good returns without any risk of a stock market crash.
The interest earned on your investment is non-taxable; hence overall return is much higher than fixed deposits.
Average Returns: 7.5%
Time To Double Your Investment: 9 Years and 4 months (Approx)
6. National Savings Certificate (NSC)
National Savings Certificate is a government-backed investment scheme that doubles your money.
You can open National Savings Certificate (NSC) account at any post office and start investing.
National Savings Certificate is a guaranteed return scheme like Post Office Fixed Deposits, Public Provident Fund (PPF), and other banks’ FDs.
Basically, it’s an investment scheme for middle-class families who want decent returns with tax deductions benefits.
An investment up to 1.5 Lakh can be claimed under section 80C of the Income Tax Act.
National Savings Certificate (NSC) investment comes with 5 and 10 years lock-in periods.
You can purchase National Savings Certificate from the post office or any bank. Just visit the branch and ask the manager to buy NSC.
Average Returns: 6.8%
Time To Double Your Investment: 10 Years and 6 Months (Approx)
7. NBFCs Fixed Deposits
Non-Banking Financial Companies (NBFCs) like Bajaj Finance Limited, Muthoot Finance, Ujjvan Small Finance Bank, Sundaram Finance, Utkarsh Small Finance Bank, etc., offer higher interest rates on fixed deposits.
The FD interest rates of these Non-Banking Financial Companies are higher than Bank FDs.
The latest interest rates for most banks are between 5% to 7%, while some NBFCs offer fixed deposit interest rates of up to 10%.
These NBFCs are regulated by the Reserve Bank of India (RBI), and they provide guaranteed interest rates on your investment.
Pro Tip: It’s advisable to go for popular NBFCs and invest up to 5 Lakh only. RBI provides insurance up to 5 Lakh rupees if banks are under moratorium.
Average Returns: 10%
Time To Double Your Investment: 7 Years (Approx)
8. Corporate Bonds
A corporate bond is a type of debt security issued by a financial institution and sold to investors. It’s a low-risk mutual fund that gives more returns than banks FD.
Corporate Bonds are ideal investment instruments for someone who doesn’t want to invest in the equity market.
You can expect an 8 to 10% average return from corporate bonds investment. But, you must choose higher CRISIL-rated firms to invest your money.
Considering 8% average returns, your investment can be doubled within 9 years.
Average Returns: 8%
Time To Double Your Investment: 9 Years (Approx)
9. Gold ETFs
Gold ETF is an exchange-traded fund (ETF) that invests your money in commodities like gold and silver.
These ETFs perform like individual stocks and are traded similarly to any stock on the Stock Exchange.
If you invest your money into Gold ETF, it means you’re virtually buying the actual gold.
However, the liquidity of metal gold is low; hence its value is traded on the Stock Exchanges like BSE and NSE.
When the price of gold increases, your investment will also grow. It’s a low-risk scheme where you can invest in diversifying your portfolio.
Average Returns: 12%
Time To Double Your Investment: 6 Years (Approx)
10. Stock Trading
Last but not least, stock trading is a popular method to double your investment quickly. But it involves lots of risks, and you know, the stock market.
I prefer swing trading in top NIFTY50 stocks because they are less volatile and give decent returns.
If you have a fundamental knowledge of a company, you can buy its shares on the stock exchange. If the company grows, the share price also increases.
I have seen a few companies whose share prices increased by 100% within 2 to 3 months. It means your investment is doubled within 3 months.
Note: You must learn fundamental and technical analysis and start investing with small capital. Once you gain enough experience and knowledge, you can invest higher.
Average Returns: 20 to 25%
Time To Double Your Investment: 3 Years (Approx)
Conclusion
Don’t jump directly to stock trading if you do not know the stock market. Start investing in mutual funds and Gold ETFs for decent returns on your investment.
If you can’t risk your capital, invest in guaranteed return schemes like Kisan Vikas Patra, Public Provident Fund, Post Office Fixed Deposits, National Savings Certificate, etc.
All these guaranteed return schemes will double your money in 10 to 15 years.
I hope you found this article helpful! Do share with your friends, colleagues, and family members.
