Alternatively, by tweaking the formula a bit, you can figure out the returns needed to double your money in a specific period. Let's find out:
If you want to double your money in three years, your investment should generate between 21% and 24% (72/3 years) each year.
Also, if you want to double your money in five years, your investment should grow by around 14.4% per year (72/5).
If your goal is to double the amount invested in 10 years, you should invest in such a way that you earn about 7% each year.
The rule of 72 provides a rough idea and is a one-time investment.
Time to double the money under PPF, Sukanya Samriddhi Yojana, KVP, NSC, NPS, and mutual funds
We take current interest rates or returns offered by these tools.
It will take an FPP at an annual interest rate of 7.1% around 10 years to double your money, assuming the interest rate is still at 7.1% (72 / 7.1 = 10.14).
Similarly, it will take Sukanya Samriddhi Yojana about 9.4 years to double his money at the current interest rate of 7.6%.
It will take 10.4 years for your KVP to double your money at the current interest rate of 6.9%.
The National Provident Certificates will take 10.5 years to double your investment.
NPS Scheme C, Scheme G for Tier II calculation offers returns of 11.5% over a one year period. Assuming a similar return, it would take NPS 6.2 years to double your investment.
Short-term mutual funds and dynamic bond funds currently generated an 8.5% return last year. Assuming similar returns, these tools would take 8.4 years to double your investment.
Medium to long-term debt mutual funds with returns of 8.7% per annum, 8.3 years will be needed to double your investment.
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