Ways to Double Money

Kisan Vikas Patra (KVP), which was discontinued in 2012 due to concerns over unregulated investments, was reinstated in 2015 with stricter guidelines. Currently, PAN card submission is mandatory for investing ₹50,000 or more in KVP, especially for cash payments, to ensure transparency. The scheme now offers an interest rate of 7.5% per annum, with the investment doubling in approximately 9 years and 7 months.

Corporate Deposits/Non-Convertible Debentures (NCD)

There are many investment avenues which can increase money twice the original. Corporate deposits is one of them. Non banking financial companies (NBFCs) and Corporates offer higher interest rates for non-convertible debentures and corporate deposits, in comparison to fixed deposits of banks. The rate of return for these deposits is around 9 to 10%, based on ICRA ratings and term of the deposit. It would take around 8 years for the money invested in this scheme, to double. Corporate deposits are issued by companies while on the other hand NCDs are issued by companies that also include NBFCs.

National Savings Certificates

Issued by the Indian Postal Department, National Savings Certificate (NSC) is one of the safest investment options available. It has a fixed tenure of 5 years with an interest rate of 7.7% per annum, compounded annually. NSC investments qualify for tax deductions under Section 80C of the Income Tax Act, 1961, up to ₹1,50,000 per year. There is no TDS on the maturity amount, and NSC certificates can also be used as collateral to avail loans from banks

Bank Fixed Deposits

Fixed deposits offered y banks are a popular choice of investment. The Reserve Bank of India (RBI) has insured fixed deposits of up to Rs 1 lakh. Post the recent repo rate cuts, by the RBI, of 0.50% (0.50 bps), several banks have followed suit and slashed interest rates for fixed deposits by 0.25% to 0.50% per annum. Investing in a fixed deposit, of any bank, to double money can take around 8 to 9 years.

Public Provident Fund (PPF)

Public Provident Fund or PPF is another popular and reliable investment scheme provided by the Government. In order to invest in PPF, a minimum deposit of Rs 500 per annum is required. The lock-in period for this scheme is 15 years. Being the lowest contribution when compared to other savings schemes, a salaried, self-employed or government employee can invest in this plan. The rate of return is offered at 8.75% per annum effective for that respective year of the fund. The maturity amount will double in around 8 years, with the money increasing in multiple folds at the end of the lock-in period.

Mutual Funds (MFs)

Mutual funds come in different types like ELSS (Equity Linked Savings Scheme), debt funds, equity funds, and balanced or hybrid funds. While investing in mutual funds carries some market risk, they generally offer higher returns compared to other investment options. The returns you get depend on how long you stay invested. Long-term mutual funds typically provide annual returns of around 12% to 15%. At this rate, your investment can double in about 5 to 6 years

Gold ETFs

Gold is an irresistible commodity in India. This yellow metal is an excellent avenue for investment. Gold Exchange Traded Funds (ETFs), launched in India in 2002. This is one of the easiest ways to invest in the precious metal, offer 22% rate of return annually. Though highly volatile, depending on the stock market, gold ETFs offer 22% CAGR during the tenure of 5 years, which means the money invested will be doubled in 3 to 4 years.

Stock Market

Investments made in the stock market have always yielded high rate of returns. The annualized rate of return observed in the stock market in the last decade has been 15%. Investing in blue chip companies can have a scope of doubling the money in a time period of 3 to 5 years. It is, however, essential to have fundamental and technical knowledge of the stock market’s working to reduce risks.

These were some of the options to double money. A good investment option should be chosen depending on the time frame of investment and risk appetite. It is advisable to opt for long term investments, as the chances of doubling the money is reliable. Always consult an advisor before choosing any investment option.