If If you want to make your money two, three or four times in investment, then discipline, patience and intensive research is necessary for this. Always invest money in the same investment option that you understand well and never invest on the basis of someone else’s opinion. Some important rules made by financial experts can make your investment journey easier. These rules help you guess how much time it will take for your investment to be doubled, three times or four times or you should invest in which average returns scheme to reach your target.
72 rule
This rule suggests when your money is double in an investment option. To understand the rule of 72, you have to give a part of the possible annual return rate in 72. For example, you have invested Rs 1 lakh in an investment option, which is giving 8 percent annual return. Now 9 in 72 will come to 9. This is the 9 number, as many years your investment will take double. That is, it will take 9 years for your Rs 1 lakh to become Rs 2 lakh in this investment.
Rule of 114
The rule of 114 shows how long it will take for your investment to be three times. In this rule, you have to use 114 instead of 72. For example, if an investment is giving you 10 per cent annual return, it will take 114/10 = 11.4 years for your amount to be three times. In this way, this investment will take 11.4 years for your amount to be three times.
Rule of 144
From the rule of 144, we can find out how long it will take for our investment to be four times. For this, you have to keep 144 instead of 72 in formula. For example, an investment is giving you 12 % annual return. So this investment will take 144/12 = 12 years for your amount to be 4 times. By using this formula upside down, you can also find out how much return will be required annually to get your investment 4 times in so many years. By using these rules, you can determine what kind of investment plans you should invest to achieve your financial goals.
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