I am a financial advisor from Mumbai. I have been working in the banking sector since 2002. It has been over 20 years of working in this sector as a financial advisor to various HNIs (High Net-Worth Individuals) living in India and abroad. From my experience, I have jotted down a list of 10 best & effective ways to double your money in 2022 and thereafter.
I advise them how they can invest their money and get maximum returns without taking any risk.
Usually, more returns mean more risk. But there are ways where people can invest their money and double their income without much risk involved.
You don’t have to be a high-income individual, just an average working professional with a steady income can invest and double their income.
Here is the list …
1. Bank Fixed Deposits
Bank Fixed deposit is an age-old, one of the safest ways to double your money. Fixed deposits offered by banks are the simplest way to get started. The reserve bank of India (RBI) has insured fixed deposits of up to Rs 1 Lakh.
The fixed deposit interest rates (below Rs 2 cores) differ from bank to bank. The range for general citizens could be anywhere between 2.5% to 7%.
Deutsche Bank offers the highest FD interest rate at 7% for a tenure ranging from 3 to 7 years.
Investing in a fixed deposit of any bank can take 8 to 9 years to double the amount.
2. Public Provident Fund (PPF)
Just like bank deposits, PPF is also an age-old way to double the money. A minimum of Rs 500 per year is required to invest in Public Provident Fund. The lock-in period for this scheme is 15 years.
This plan is for everyone because the lowest possible contribution is required compared to any other savings scheme. Salaried, self-employed, and government employees can avail this scheme.
The rate of return is 8.75% per year, with this rate the maturity amount will double in 8 – 9 years. By the end of the lock-in period, the amount will increase multiple folds.
3. National Savings Certificates
Another secured way to invest in National Savings Certificate, issued by the Indian Postal Department. These certificates have a fixed tenure of 5 and 10 years.
The interest rate is also fixed which is calculated at the end of tenure. For a 5 year period, the rate of interest offered by NSC is 8.5% per annum. And for 10 year period, it is 8.8%.
So your money can easily double in 7 to 8 years. But the best thing about NSC is they are exempted under Section 80C of the Income Tax Act, 1961.
Also Check: How to Earn Bitcoins?
4. Corporate Deposits and Corporate Bonds
If you want a higher rate of return than a fixed deposit or PPF, you can invest in corporate deposits. NBFCs offer higher interest rates for corporate deposits. Usually, it is 9% to 10% based on terms of the deposit. So just within 8 years, your money will double.
Similarly, you can go for corporate bonds. Here the interest rates are decided by the credit score and market credibility of corporate FDs. But usually, it is between 7% and 12% per annum.
5. Mutual Funds
A mutual fund is a bit riskier than the previous three options. Here your investment will depend upon the market and the economy. In simple words, mutual funds offer higher returns, but with a slightly higher risk.
There are various types of mutual funds like ELSS, equity, debt, and balanced mutual funds. Long-term mutual funds can offer rates of 12% – 15% per annum. You can easily double your money in just 5 to 6 years.
However, you have to keep yourself updated with the market and economy. Beginners can start with the SIP.
6. Gold ETFs
Gold is one of the best ways to invest and double your money especially when inflation is expected to rise even more in the coming years.
It has given a consistent return of 10% in the last few years. You can invest in gold ETFs, gold bonds, and sovereign Gold bond schemes. The minimum initial investment is one gram of gold. A certificate will allow you to own gold.
You will receive over a 2.5% interest rate per year on the amount you invested. The lock-in period is 8 years.
Sp in 8 years you can double your principal amount.
7. Real Estate
Real Estate is a very non-complicated way to double your money. It is very simple if you are living in a metropolitan city like Mumbai or New Delhi.
You can generate a regular rental income by investing in a residential or commercial property as well as in 6 to 7 years the value of your property will double.
However, you will require huge capital to buy the property. You also have to buy the property in the right location.
8. Stock Market
Stock market is also a great way to double or even triple your money in a very short period of time.
However, this is the riskiest investment option mentioned in the article. You have to buy and sell stocks.
I am not recommending day trading. But you can invest money for a longer time period. If you invest in the right sectors and right companies then you can easily double/triple your money in just a couple of years.
However, you have to do a lot of research and learn about the market daily. The stock market is not for amateurs. You can lose your entire wealth if you haven’t done your research properly. Read newspapers, and blogs like SureJobs and download a few useful trading apps to do your research and get updated with the latest market news.
9. Small Businesses
Another smart way to double your income is by investing in small businesses. You don’t have to run the business; you just invest in the business by becoming a partner.
It is just like venture capitalists that invest in startups and make money. You can invest in business ideas like a fitness center, a restaurant, a lodge, a coaching center, nursing home, a digital marketing agency, online businesses, etc. There are dozens of profitable business ideas you can invest in.
You can easily double your money in 3 to 4 years.
However, you have to find the right partner who you can trust.
10. Cryptocurrency& NFTs
If you are an avid investor and have an interest in learning markets then you can invest in Cryptocurrency and NFTs. The value of cryptocurrencies is totally dependent on whether people want to buy them or not. They are not dependent upon corporate profits like in stocks.
In India, there is an ambiguity about the legality of cryptocurrencies. They can offer higher returns but the risk is also higher because it is not regulated in a traditional manner.
You can invest in Bitcoin, Ethereum, or something else. Bitcoin has returned an average of 18% compared with other investments.
Before you invest you have to do a lot of research because NFTs are still in the early stages.
These were the 10 best & effective ways to double your money in 2022. The first four are very low-risk ideas, the next three ideas involve medium risk but the last three are very risky.
So you can choose an investment idea depending on your risk appetite. Always remember higher the return, the higher the risk!