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5 Best Investment Strategies to Double Your Money in 2021

Investment Strategies to Double Money in 2021

Investing depicts the best opportunity to enhance an individual's earnings, but only when the investment strategy correctly performs. Moreover, there are several investment strategies to double the money you can choose from, and this article discusses the best five investment strategies to double your money in 2021. However, there is no get rich quick scheme. Every investment strategy requires consistency, dedication, patience and discipline. Furthermore, as an investor, the most optimal method of doubling the money is to generate high returns. How can you do that? Just use one of these five investment strategies and start to double your money in 2021.

The Rule of 72

The rule of 72 is an investment principle that divides 72 by an annual growth rate or interest rate. The answer displays the number of years it takes to double the investment. For instance, 72 / 15% Growth = 4.8 Years. Therefore, if an investment earns 15 per cent each year. This means that it takes around 5 years to double the investment. Therefore, the higher the investment, the less time required to double the money is reduced. Investors require a growth rate of at least 15% to double the investment within five years. Therefore, all investment strategies to double money should apply the rule of 72.

5 Investment Strategies to Double Money 2021

Earning a two-fold return is a realistic goal that an investor should always target. There are five ways to get there. The investment strategy you choose relies mainly on your inclination for risk and your timeline for investing. Therefore, to achieve this level of returns over time, several opportunities come with limited risk. Meanwhile, those searching for shooting the lights out have their share of high-risk, high-reward choices to choose from, too.

1.      Invest in Stocks

Stock represents the smallest contribution in the business, and an investor earns through dividends and capital gain. When attempting to understand how to double your money in 2021, investing in the stock market is the optimal way to enhance your wealth over the long term.

The stock market is high-risk. However, an investor earns money by investing in the stock market. KSE 100 is the most acknowledged Index of Pakistan Stock Exchange (PSX) which comprises the most prominent companies based on market capitalization. The Index represents 85% of all the market capitalization. Therefore, investing in KSE-100 is one of the prominent investment strategies to double money in 2021.

2.      Invest in Real Estate

Investing in real estate provides various ways of doubling your money. Moreover, real estate provides easy access to low-interest leverage through a mortgage or other real estate loans. Therefore, this means that cash investment is relatively less compared to the asset value. Furthermore, a real estate investment strategy enables property appreciation through repairs and renovations, after which an investor can turn around and sell it. Moreover, investors can double wealth by finding a solid rental property and holding it long-term through investing in real estate. Therefore, investor generates monthly cash flow and also benefits from any appreciation of real estate asset.

Kingdom Valley in Islamabad is an excellent real estate investment avenue. The real estate property is available at affordable rates, and expects that investors will earn a high return on the investment. The housing scheme situates on Chakri Road near New International Airport.

3.      Give a Loan on Interest

Lending money to someone on interest is perhaps an effective investment strategy to double wealth in 2021. An investor can lend their savings or money to a peer or business on a certain percentage of interest for a given period. Therefore, the borrower has to pay back the original loan amount with interest at the time of maturity when the loan expires. Now, the investor has to apply the rule of 72 and calculate the percentage growth which the investment requires to double the money in a certain number of years.

4.      Invest in Cryptocurrency

Cryptocurrency is a prominent and profitable investment strategy, and it only continues to grow in popularity. Therefore, cryptocurrency denotes an opportunity to grow your money speedily and, on a platform, excluding more traditional investment types. However, it must say that while cryptocurrency provides a high reward potential, there is also a level of the potential risk to be aware of. Moreover, as it is a volatile investment strategy, you can earn millions or even lose money.

5.      Diversify your Investment Strategically

Diversification represents the spread of money across different investments to develop a portfolio that fulfils both risks and return needs. As a common rule, riskier investments such as stocks can generate higher returns. However, more conventional investments, like bonds, incline to generate lower returns, but there's less risk of money loss. If you wish to double money, it's imperative to focus on diversification and what that represents for your return on investment.

Conclusion

The investment strategies to double money in 2021 includes investing in stocks, real estate with assistance from Estate Land Marketing, cryptocurrency, diversification and loan on interest. You can double your money in 2021, but it requires dedication, patience and consistency.

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