We are always looking for ways to save and invest more money, no matter how much income we earn monthly. Everyone knows how important having some savings or an emergency fund can be but finding suitable ways to double our money or even save it seems to be difficult.
A lot of people in India choose life insurance savings plans which help them in saving their wealth and growing their wealth twofold over the years.
Creating a double income or a surplus of your savings does not have to be a challenge. Moreover, you should also consider your risk profile as an investor if you are interested in doubling your money through the market-linked instrument. And apart from finding the right savings or investments, it is equally important to know how to make the best of them.
4 Ways to Double your Money
Growing your wealth or doubling it can be simple if you look for the right options to invest or save your money. Since it is true that traditional savings options do not offer enhanced returns, you should consider investments and savings schemes that help your wealth grow through compound interest. As opposed to simple interest, compound interest enables you to earn interest on the principal amount as well as interest earned on the investment.
There are also some plans with market-linked options, such as Unit-Linked Insurance Plans, that most investors choose for their portfolio. Keeping these options and other choices in mind, here are 4 investments and savings plans to help you double your money:
National Savings Certificates (NSC)
The National Savings Certificates (NSC) can be issued by the Indian Postal Department and are considered to be an effective but quite secure investment option.Unit-Linked Insurance Plans (ULIP)
Though ULIPs are market-linked investments, you can select from the choice of fund options offered under the policy. Since market-linked returns are generally more, it is advisable to check your risk profile before you invest in a ULIP. If you choose a policy and the fund options carefully and review your investment periodically, you will be able to grow your wealth twofold over the chosen investment term or policy period.
It helps to also have life insurance coverage protection for your family under the same policy, which will offer the guaranteed1 sum assured benefit to your loved ones in case of your untimely demise.
Savings Insurance Plans
With a savings plan, you have the option to increase your wealth over the long term along with life cover protection for your loved ones. By choosing a policy term of your choice, you can pay your premiums as per a premium payment term of your preferremove linkence to accumulate the desired sum assured that you can receive on maturity. With a TATA AIA policy you can start a savings policy early and invest up to the maximum annualised premium offered under the policy to double your money over the years.Public Provident Fund (PPF)
It is not always necessary that all your investments will be able to yield the desired results, even in long-term investments. And this is why you should always be able to realign your portfolio and readjust your investments if you are looking for ways to double your money steadily.
Points to Consider if you Want to Double your Money
Most of us forget to keep track of how our investments are performing and how our money is growing once we invest the amount. However, here are three common points to look out for if you want to be able to do your best in increasing your wealth:
Always track your investments.
Even if you are investing in less-risk instruments, it is always a good idea to understand how your investments are doing from time to time. There may not be enough scope for you to change your investments all the time, but you may want to increase the investment amount each year or every few years.Keep up with trends.
There is no doubt that the investment choices you make are the most suitable for you. However, always be on the lookout for other investment options as well. It is advisable to diversify your portfolio and move your money between investments, as all investments do not yield the same results every time.Be consistent over the long term.
.If anything, always plan for the long term. Short-term investments may be great for meeting your immediate goals, but they do not help you sustain or grow your wealth significantly. Even if you start with a small amount, the goal should be to increase the investment, stay consistent and continue investing for years.
Conclusion
There is no quick or easy way to double your wealth and money in any way. On the contrary, it is safer to stick to long-term means and investments to increase your wealth so that you can combat various economic and financial risks when your money is growing.
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