Investment Tips: Do you want to double, triple or quadruple your money in investments? If this is your dream, you will need a lot of discipline, patience and research. First of all, invest money in only those investment options which you understand closely. Do not invest your money on someone's advice or on someone's opinion, otherwise you may get into trouble. There are many formulas in the world of personal finance. These formulas created by experts make your investment journey easier. Today we will tell you 3 such formulas by which you can know how much time it will take for you to double, triple or quadruple your investment. By using these formulas, you will know what percentage of your money you have to invest in an investment scheme with average return to achieve your target.
rule of 72
This rule tells when your money doubles in an investment option. To understand the Rule of 72, you divide the expected annual rate of return by 72. For example, you have invested Rs 1 lakh in an investment option which is giving 8 percent annual return. Now dividing 72 by 8 will result in 9. This 9 is the number of years it will take for your investment to double. That means in this investment it will take 9 years for your Rs 1 lakh to become Rs 2 lakh.
rule of 114
The Rule of 114 tells you how long it will take for your investment to triple. In this rule you have to use 114 instead of 72. For example, if an investment is giving you 10 percent annual return, then it will take 114/10 = 11.4 years for your money to triple. In this way, it will take 11.4 years for your money to triple in this investment.
rule of 144
Using the rule of 144, we can find out how much time it will take for our investment to quadruple. For this, you have to put 144 instead of 72 in the formula. Like an investment is giving you 12 percent annual return. So, it will take 144/12= 12 years for your amount to quadruple in this investment. You can also use this formula in reverse to find out what percentage of annual return will be required to multiply your investment 4 times in so many years.
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