Rule of 72
This simple to calculate formula reveals how long it may take for your investment to grow substantially or even double — as you relax and stay invested.
The Formula -
72 / Interest Rate = Years to Double
Here’s how to apply it -
Take various interest rates from your different investments and calculate them with the Rule of 72.
At 6% interest rate i.e. (72/6) it will take 12 years for your money to double.
At 9% interest rate, it would take eight years for your money to double.
And, at 12% interest rate, it would take six years for your money to double.
Use the Rule of 72 to compare investment avenues and find out which of them have a better chance of doubling your money faster.
But, the idea of doubling your money within a set timeframe can only materialize if you strategize it well and take the necessary caution.Disclaimer - Mutual Fund schemes do not offer any assured or guaranteed returns