Know when and how your money will double in PPF, SSY, KVP, NSC or Mutual Funds

NPS Scheme: Good news! You will get Rs 50,000 pension every month after retirement, know how
NPS Scheme: Good news! You will get Rs 50,000 pension every month after retirement, know how

New Delhi. Everyone wants their capital to grow the fastest in the least amount of time. Doubling your money in any kind of investment depends on how long you invest and how much interest or return is received on it, the higher the return or interest, the sooner your money will double, But, you can still find out about your current investment, how much time will this money double. For this, you just have to understand the rule of 72. So let’s know what this rule is.

Rule of 72 is a very simple formula, which very few people know about. Under this rule, you divide the interest received on your investment by ’72’. This gives you an idea that in how many days your money will double. The Rule of 72 gives an approximate idea. Suppose you have made a fixed deposit in a bank at an interest of 5% per annum. In such a situation, it will take about 14 years to double your money. Now you will say how it will take 14 years or how this figure was reached. For this, understand this small and very simple arithmetic.

Rule of 72
= 72/5
= 14.4 years

How much do you have to invest if you want to double your money? Now, by making a small change in this formula, you can also find out how much you will have to invest in a fixed time that your money will double. Now we also know this.

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If you want to double your money in just 3 years, then you should get a return of about 21 to 24 percent (72/3 years) every year. Similarly, if you want to double your money in 5 years, then for this you should get interest at least 14.4 per cent (72/5) every year. If you want to double the money in 10 years, then interest should be paid at the rate of around 7.2 percent every year.

What does this rule reveal about PPF, Sukanya Samriddhi Yojana (SSY), Kisana Vikas Patra (KVP), National Savings Certificate (NSC) and Mutual Funds? To calculate this we have taken the current interest rate.

PPF is getting interest at the rate of 7.1 percent annually. In such a situation, after investing in PPF, it will take about 10 years (72 / 7.1 = 10.14) if the money doubles. However, a condition for this would be that the interest rate would remain at 7.1 per cent for the entire 10 years. Decrease or increase in interest rate will affect the duration.

Similarly, in Sukanya Samriddhi Yojana, it will take about 9.4 years to double the money. At present, the rate of interest is 7.6% under this scheme.

At the rate of 6.9 per cent interest is being received on the Kisan Vikas Patra. Accordingly, putting money in KVP will double in 10.4 years.

National Savings Certificates are getting interest at the rate of 6.8%, according to which it will take 1.5 years for the money to double.

Currently, short-term mutual funds and dynamic bonds are yielding a rate of around 8.5 per cent. This is based on the past year. If you consider similar returns, then after investing in them, your money will double in about 8.4 years.


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