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Vidhya Naikar How to Invest Money

Vidhya Naikar Explaining type of Investment

There’s something about the idea of doubling one’s money on an investment that intrigues most investors. It’s a badge of honor dragged out at cocktail parties, a promise made by over-zealous advisors, and a headline that frequents the covers of some of the most popular personal finance magazines.

Perhaps it comes from deep in our investor psychology – the risk-taking part of us that loves the quick buck. Or maybe it’s simply the aesthetic side of us that prefers round numbers – saying you’re “up 97%” doesn’t quite roll off the tongue like “I doubled my money.” Fortunately, doubling your money is both a realistic goal that investors should always be moving toward, as well as something that can lure many people into impulsive investing mistakes. Here we look at the right and wrong ways to invest for big returns.

The Classic Way – Earn It Slowly
Investors who have been around for a while will remember the classic Smith Barney commercial from the 1980s, where British actor John Houseman informs viewers in his unmistakable accent that they “make money the old fashioned way – they earn it.” When it comes to the most traditional way of doubling your money, that commercial’s not too far from reality.

Perhaps the most tested way to double your money over a reasonable amount of time is to invest in a solid, non-speculative portfolio that’s diversified between blue-chip stocks and investment grade bonds. While that portfolio won’t double in a year, it almost surely will eventually, thanks to the old rule of 72.

Read more: 5 Ways To Double Your Investment http://www.investopedia.com/articles/stocks/09/five-ways-double-investment.asp#ixzz4vBePBi5V
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Sandeep Shinde