Investment Idea: Using Rule Of 72 To Find Out Which Asset Can Double Your Money In The Shortest Time
Have you ever wondered how long it can take to double money? There is a simple do-it-yourself (DIY) formula, with the help of which it can be calculated. People are often confused about where and how much to invest. From Fixed Deposit (FD) to Gold, Mutual Fund (MF), Provident Fund (PF), Government Schemes, there are many investment options available.
How can you decide which of these is best for you? For this, you have to first decide the investment period and financial goals. An easy way can be to go for the option which gives higher returns in less time.
The ‘Rule of 72’ can help you in choosing the most profitable avenue of investment. Using this formula, you can find out which assets can double your money in the shortest time.
By reversing the formula, it can also be found that what is the interest rate required to double the money in the given time. The rule is generally used on fixed-rate options. However, even in volatile and volatile instruments like the stock market, the formula can be used to give a light idea of the potential returns.
With the help of Rule of 72, right financial decisions can be taken by choosing better investment options.
