Ways To Double Your Invested Earnings

You may be thinking about how to double your money in 2021. Investing is a great way to boost your profits, but only if done right. There are various investment options available, but these handfuls stand out as viable sources of income. Read the list below to discover more about ways to start double your money this year, and prepare to consider risk vs. return.

Ways to Make Your Invested Earnings Grow 

Here are a few ideas for doubling your money:

1. Bonds that are Tax-Free

Initially, tax-free bonds were only offered for a limited time. The government has, however, allowed a few state-owned enterprises to issue these bonds for Rs 40,000 crore. The PFC and NTPC tax-free bonds are already in considerable demand. For the 2015 series, the interest rate or tax-adjusted return given by tax-free bonds ranges from 8.20 percent to 8.50 percent each year, depending on the tenure. In 8 to 9 years, investing in this bond can quadruple your money.

2. Kisan Vikas Patra 

Kisan Vikas Patra (KVP) was resurrected in 2015-16 after being declared extinct in 2012. The insurance was canceled because there was no control over the revenue source invested in the scheme, and anybody may acquire a plan from KVP. However, according to current laws, a PAN card is required to enroll in the Kisan Vikas Patra scheme, which requires a cash investment of Rs 50,000. KVP's current rate of interest is 8.70 percent per year, which means the money will be doubled in around 8 years.

3. Non-Convertible Debentures/Corporate Deposits (NCD)

There are several investment opportunities that can double your money's value. One of them is corporate deposits. In comparison to bank fixed deposits, non-bank financial firms (NBFCs) and corporations provide greater interest rates on non-convertible debentures and corporate deposits. Based on ICRA ratings and deposit period, the rate of return for these deposits is roughly 9 to 10%. The money invested in this strategy would double in around eight years. Corporate deposits are issued by businesses, whereas NCDs are issued by businesses, which include NBFCs.

4. Certificates of Deposit (NSCs)

National Savings Certificates (NSC), which are issued by the Indian Postal Department, are one of the safest investment alternatives. These certificates feature a fixed 5- or 10-year term, as well as a fixed rate of interest-based on the term. The rate of interest given for NSCs with 5-year duration is 8.50 percent each year. NSCs with a term duration of 10 years, on the other hand, have an annual interest rate of 8.80 percent compounded. Section 80C of the Income Tax Act, 1961 exempts up to Rs 1,50,000 in National Savings Certificates. There is also no TDS on the money collected at the scheme's maturity.

5. Fixed Deposits in Banks

Fixed deposits, which are given by banks, are a popular investment option. Fixed deposits of up to Rs 1 lakh are guaranteed by the Reserve Bank of India (RBI). Following the RBI's recent 0.50 percent repo rate drop, other banks have followed suit and lowered fixed deposit interest rates by 0.25 percent to 0.50 percent each year. It might take 8 to 9 years to double your money by investing in a fixed deposit with any bank.

Take Away

These were some of the possibilities for doubling your money. Depending on the investment time period and risk level, a solid investment option should be picked. Long-term investments are recommended since the odds of doubling your money are high. Before making any investment decision, always get advice from a professional.

Also Read: What Are The Benefits Of Having A Life Insurance Policy

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.