Ways to Double Your Invested Money

You can double your money through the various investment options available in the Indian market. The Indian investment market provides NRI investors with a large number of asset classes along with several benefits to make the most out of your investments. This article discusses some of the best investment assets and strategies you can invest in to double your money.

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Rule of 72

The Rule of 72 is a simple way to estimate how long it will take for your investment to double in value.

The formula for the Rule of 72 is as follows:

Number of years to double = 72 / Annual interest rate

For example,

If Annual Interest Rate from Your Investment= 10% p.a.

No. of Years to Double Your Money= 72/10

= 7.2 years

If Annual Interest Rate from Your Investment= 12% p.a.

No. of Years to Double Your Money= 72/12

= 6 years

If Annual Interest Rate from Your Investment= 15% p.a.

No. of Years to Double Your Money= 72/15

= 4.8 years

So, what is the best way to invest money to double your investments with high returns? Let us learn about the best investment plans in India for NRIs in this next section.

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Effective Ways to Double Your Money in India

As a Non-Resident Indian (NRI), you may be looking for ways to grow your wealth and reach your financial goals. While there is no guaranteed way to double your money, there are a number of effective investment options that can help you achieve your goals:

ULIP Plans:

ULIP stands for Unit Linked Insurance Plan. It is an investment-cum-insurance product offered by insurance companies. ULIPs provide life insurance coverage, but they also allow you to invest in various market-linked funds such as stocks, bonds, and mutual funds. According to the Rule of 72, it would take approximately 9 years for your investment in the ULIP plan to double, assuming a constant annual growth rate of 8%.
Equity Mutual Funds:

Mutual funds are a type of investment that allows you to pool your money with other investors to buy a variety of assets, such as stocks, bonds, and money market instruments. There are many different types of mutual funds, each with its own risk and return profile. Some of the most popular types of mutual funds for NRIs like ELSS (Equity Linked Savings Scheme), equity-oriented, debt-oriented, and balanced mutual funds. In general, long-term mutual funds, which are held for more than 5 years, tend to offer higher returns of 12- 19% than short-term mutual funds. Long-term mutual funds have the potential to double your money in approximately 5 to 6 years.
Tax-Saving Fixed Deposits (Tax-Saver FDs):

Tax-saving fixed deposits (Tax-Saver FDs) are a type of fixed deposit that offer tax benefits under Section 80C of the Income Tax Act, 1961. The interest rates on Tax-Saver FDs are typically lower than the interest rates on regular fixed deposits. However, the tax benefits can make Tax-Saver FDs a good option for NRIs who are looking to save tax on their investments. Note that only NRO FDs are classified as tax-saving FDs and thus allow for deductions under Section 80C. If you invest in a Tax Saver FD with an annual interest rate of 8%, it will take 9 years to double your money. Therefore, if you invest Rs. 1 lakh in a Tax Saver FD with an annual interest rate of 8%, your investment will be worth Rs. 2 lakhs in 9 years.
Corporate Bonds:

Corporate bonds are a type of debt security issued by companies. Corporate bonds can be a good way to earn a higher return on your investment than you would with a savings account or a fixed deposit. The rate of return from corporate bonds depends on a number of factors, including the credit rating of the company, the interest rate, and the maturity date of the bond. If the rate of return from a corporate bond is around 8-9% p.a., then your investments will double in 8 or 9 years.
Initial Public Offerings (IPOs):

Initial Public Offerings (IPOs) are a way for companies to raise money by selling shares of their stock to the public. When you invest in an IPO, you are buying a piece of the company. If the company does well, the value of your shares will go up, and you can sell them for a profit. The average rate of return from IPOs in India is between 10-12% p.a. If you invest in an IPO, you can double your money in around 6 to 7.5 years. As a word of caution, if you are looking to double your money by investing in IPOs, you may need to be patient. It may take some time for the stock price to go up enough to double your investment.

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Gold ETFs:

Gold has always been a popular investment for NRIs. It is a precious metal that has held its value for centuries. Gold is also a hedge against inflation, meaning that its value tends to go up when the cost of living goes up. In recent years, gold has delivered consistent returns of about 10%. This makes it a more attractive investment than many other assets, such as stocks and bonds. There are a few different ways to invest in gold. You can buy physical gold, such as gold coins or bars. You can also invest in gold ETFs or gold bonds. Over the last few years, the rate of return from gold ETFs has been 10-12%. Hence, if you invest your money in gold ETFs, it may take around 6 to 7.2 years to double your money.
Real Estate:

Real estate is a popular investment in India for NRIs. It is a tangible asset that can appreciate in value over time. Real estate can also generate a regular rental income, which can help you to supplement your retirement income or simply generate passive income. The returns from real estate depend on a number of factors, including the location of the property, the type of property, and the overall market conditions. The rate of return for an NRI from real estate in India is around 8-10%. As per the Rule of 72, you can double your money in 7.2 to 9 years by investing in the real estate sector.
Stock Market:

The stock market is a powerful tool that can help you to double your money and build wealth. However, if you are considering investing in the stock market, it is important to understand the risks involved and do your research and choose stocks that are likely to do well in the long term. The returns from the stock market depend on a number of factors, including the performance of the market, the sectors you invest in, and the individual stocks you choose. The rate of return for NRIs from the stock market in India is expected to be around 10-12%. Hence, by investing in stock markets, you can increase your money two times within 6 to 7.2 years.

Taxation on Indian Investments for US-Based NRIs

While doubling your investment might be achievable, the tax laws governing NRI investments in both countries can significantly affect your final corpus. Thus, while using the 72 rule, it is also essential to take taxation into consideration and calculate your final corpus. The following table lists the key investment options along with their taxation implications.

Investment Option	Indian tax/rules	US-specific considerations
ULIPs	Premiums are eligible for deductions under Section 80C. Maturity is tax-free if the annual premium across all ULIPs is below ₹2 lakh.	Classified as a passive foreign investment company (PFIC) and thus taxed at the highest ordinary rates. Also needs the filing of form 8621 annually irrespective of the income generated from the investment.
Equity Mutual Fund	Capital gains as per tenure of holding STCG: 20% LTCG: 12.5%	Classified as a passive foreign investment company (PFIC) thus required annual reporting under Form 8621 along with deduction of excess distribution tax. FACTA reporting is also mandatory.
Tax saver FDs	NRO Tax saver FDs qualify for deductions under Section 80C of up to ₹1.5 lakh per annum. Note that the interest earned is fully taxable at 30% TDS aligned with surcharge and cess.	Any interest earned should be reported as ordinary income and is taxed as such.
Corporate bonds	Any interest earned is taxed at the income tax slab rate of the individualdual	Any interest earned should be reported as ordinary income and is taxed as such.
IPOs	Gains are taxed as per tenure of holding STCG: 20% LTCG: 12.5%	Short-term capital gains are taxed at ordinary income rates Long-term capital gains are taxed at 0%, 15% and 20% as per the income. You can claim the foreign tax credit through Form 1116
Gold ETFs	Long-term capital gains are taxed at 12.5% while short-term capital gains are taxed at the income tax slab rate of the individual.	Classified as a passive foreign investment company (PFIC) thus requiring annual reporting under Form 8621.
Real Estate	Long-term gains are taxed at 12.5%, and any rental income is taxed at 30%	Gains are to be reported under Schedule D, while rental income should be reported under Schedule E of Form 1040.
Stock Market	Long-term gains above ₹1.25 lakh are taxed at 12.5% while short-term capital gains are taxed at 20%.	The gains are reported as capital gains under Schedule D of Form 1040. Individual stocks avoid PFIC classification, making individual stocks one of the best options to invest in for NRIs.

Conclusion

The various investment options available in India provide an array of opportunities to double capital for NRIs; however, it is also essential to consider various factors when investing your money in these assets. Ensure you factor in your risk appetite, the tenure of your investment, the rate of return, your financial goals, the tax implications and the tax filings that will accompany your investment. You can further read about NRI investment plans and make a choice complementing your financial goals.

FAQ's

How can I make double the money in India?
Following are some of the best ways to double your money in India:
- Invest in ULIP plans and mutual funds
- Invest in real estate, stocks, and gold assets
- Start small and gradually increase your investment as you gain more experience
- Invest for the long term
- Diversify your portfolio
Which scheme is the best double money in India?
Some of the most popular schemes that have the potential to double your money include:
- Unit Linked Insurance Plan (ULIP)
- Fixed Deposit (FD)
- Mutual Funds
- Real Estate
- Stock Trading
How do I double my money fast?
There is no sure-fire way to double your money fast. However, there are some legitimate investments that have the potential to double your money over the long term.
The tips to double your money fast are as follows:
- Invest in high-growth stocks
- Invest in real estate
- Start a business
- Invest in diversified assets
- Start investing early
How can I double my $1,000?
As an NRI (Non-Resident Indian), there are several investment options available in India that could potentially help you double your $1,000. Here are a few possibilities:
- ULIPs
- Equity Mutual Fund
- Tax saver FDs
- Corporate bonds
- IPOs
- Gold ETFs
- Real Estate
- Stock Market