PERSONAL FINANCE
Your chances of success increase with better investing choices, which can help you achieve your financial objectives. Know these thumb rules of investing.
When it comes to making plans for the future or preparing for unforeseen circumstances, managing your finances is crucial. To earn a greater return, whether investing or saving, one should always hunt for the finest alternative.
It might be overwhelming to select the best investments and design an investment strategy that produces the best returns. There are many common investing rules of thumb. Although they might be a wonderful help, thumb rules shouldn't be the main factor determining whether you buy a product or not. The predicted interest rate is the catch. You won't be able to get a 100 per cent guarantee from any investment product about the interest rate it will be able to deliver in the upcoming years.
(Also Read: Twitter to now share ad revenue with Blue verified users, know what Elon Must said)
Thumb rules, however, might act as general recommendations.
Rule of 72:
The Rule of 72 is a straightforward formula for calculating how long it will take an investment to double given a set annual rate of interest. Investors can predict the number of years it will take for their initial investment to double by dividing 72 by the annual rate of return.
For example: If a mutual fund investment yields an annual return of 14%, it will take (72/14) = 5.14 years for your money to double in value.
(Also Read: IndiGo passenger booked Patna flight, lands in Udaipur: Timeline of when, how the mix-up happened)
Rule of 114:
The rule of 114, which follows after the rule of 72, advises an investor on how long it will take for their money to triple. Take the number 114 and divide it by the investment product's return rate to achieve this. The amount of years left is how long it will take for your investment to treble.
For example: If you put Rs 100,000 into an investment with a 10% annual expected return, then the Time to triple is 114/10, or 11.4 years.
Rule of 144:
The rule of 144 is the last rule in the list. This rule explains how long it will take for your money to increase to four times, or quadruple, its original value. This concept essentially applies to people who stay invested for a very long time in order to watch their money grow four times as much.
For example: If you invest Rs. 1,000,000 with a 10% annual expected return, then Time by Fourfolding is 144/10 = 14.4 years.
Cyclone Dana: Schools closed in West Bengal, Odisha for 4 days from...
Delhi govt to provide special assistance of Rs 5000 monthly to...
Rape-accused Hollywood producer Harvey Weinstein diagnosed with bone marrow cancer
IND vs NZ: Sarfaraz Khan or KL Rahul; Who will find a spot in 2nd Test? India coach says…
Mumbai Police interrogates Ekta Kapoor, her mother Shobha Kapoor in case under POCSO act
Mukesh Ambani may team up with govt to sell food products through...
Bengaluru: Several feared trapped as under-construction building collapses
Best Cheap VPS Hosting Providers: Top Picks for Hosting Under USD 10
Zomato CEO Deepinder Goyal set to raise Rs 8500 crore, says it is meant to...
BRICS Summit 2024: PM Modi meets President Putin, says India ready to cooperate in...
Meet man, Nepal's only billionaire, owns this instant noodles brand, his net worth is Rs…
‘Rohit Sharma changed Playing XI before toss’: Sanju Samson makes BIG revelation about T20 WC final
BJP leader's son marries Pakistani woman online, after he fails to get visa, watch viral video
Good news for Gautam Adani, his Rs 121000 crore company's net profit jumps 172% to Rs...
Empowering Neurodiversity: Strategies for Inclusive Supplier Diversity By Harshila Gujar
Big move by BSNL, launches 7 new services to woo users, challenge for Mukesh Ambani's Reliance Jio
India star Sarfaraz Khan blessed with a baby boy, pics go viral
Parineeti Chopra has a perfect reply to hubby Raghav Chadha's heartwarming birthday wish
'Will work with India to implement...': China on LAC patrolling agreement
Tata-BSNL partnership promises BIG relief for customers, set to provide fast internet in...
'This is pathetic, disgusting': Nia Sharma faces backlash for promoting 'vagina tightening' tablets
Big move by Gautam Adani: Ambuja Cements to acquire this cement brand for Rs 8100 crore
Why US Presidential Election is always held on first Tuesday in November?
'Perfect for him': Aamir Khan in talks to play Kishore Kumar in Anurag Basu's film; fans react
After calling Prabhas a 'joker', Arshad Warsi says 'everyone is allowed to...'
BRICS Summit Prelude: India and China move to defuse border tensions
Sakshi Malik’s BIG claim, says BJP's Babita Phogat wanted to be WFI chief, encouraged wrestlers to…
India launches its 4th nuclear-powered submarine, set to play major role in…
Uttar Pradesh: 6 killed in oxygen cylinder blast in Bulandshahr house
Why Kriti Sanon used to be called 'Tiger didi'? Actress reveals reason
'Zyada Hero Ban Raha Hai': Rohit Sharma's chat with teammate caught on stump mic, video goes viral
Prince Narula, Yuvika Chaudhary share FIRST photo of their daughter
Delhi AQI October 22: Air quality in ‘very poor’ category, Centre imposes GRAP Stage II from today
Man who threatened Salman Khan, demanded Rs 5 crore, issues apology: 'It was...'
Karni Sena announces Rs 1,11,11,111 for any police officer who kills Lawrence Bishnoi
US Presidential Elections 2024: Republican Donald Trump sued for defamation by Central Park Five
‘Will be able to…’: EAM S Jaishankar explains India, China patrolling deal along LAC
'Even double standards are...': Jaishankar's big attack on Canada amid diplomatic row
Hyundai Motor India IPO listing today: All you need to know about largest-ever IPO in India
Diwali Gift: THIS company gave Tata, Maruti cars to its employees ahead of festival, they cost Rs…
IMD issues alerts as Cyclone Dana approaches, heavy rainfall predicted for these states
RSMSSB Rajasthan CET 12th-level exam starts today, check guidelines here
DNA TV Show: Terror threat in Delhi after Rohini blast? Police tighten security ahead of Diwali
Taylor Swift suffers wardrobe malfunction on stage during her Miami concert, video goes viral
Ruturaj Gaikwad to lead India A squad for Australia tour; Ishan Kishan in, Shreyas Iyer misses out
THIS was going to be Aishwarya Rai's first film in Hindi but it didn't release because...
Meet woman, born in Pakistan, attempted suicide at 22, now leads Rs 1 lakh crore company, she is...