Money

PPF, EPF, Bank FD to Small Savings Scheme – know when you will get double your money

Rule 72 calculator: When an investor invests in a scheme, he is quite clear about one’s investment goal. However, sometimes, the investor fails to meet his investment target and in that case it becomes quite difficult to address the financial crisis, especially in the case of a long-term investment goal. To help an investor avoid any lapse in meeting any financial goal, rules 72 in finance suggest. The rule only helps an investor to know that one’s money will be doubled. Therefore, by using this rule 72 in an instrument such as a public provident fund (PPF), an employee provident fund (EPF) account or a bank fixed deposit (FD), this rule is helpful in determining whether the investment option fulfills the investment Whether or not the goal will help.

Speaking on Rule 72 in Finance and MD at Optima Money Managers, Pankaj Mathmal said on how it works in one’s personal finance, “The Rule 72 calculator helps an investor know that someone’s money How long will it double or not selects a particular investment option. The simplest way to find the answer is to divide 7 by the interest rate given by the investment instrument. For example, the PPF interest rate is 7.1 percent, then Rule 72. It will take 10.14 years to double using a calculator. The PPF interest rate is the same, but the EPF interest rate is equal to 8.5 percent, so one’s money will double in 8.47 years. “

Mathpal said that Rule 72 helps an investor know whether the investment toll will help him meet any investment option.

Highlighting the limitations of the Rule 72 calculator Manikaran Singhal, the founder of goodmoneying.com stated, “Rule 72 in finance is an annual increase, while there are investment instruments that calculate quarterly or half-yearly interest.” In the situation, Rule 72 does not accurately inform. The figure is but to ensure that one must be aware of one’s investment goal and the time required for that time. “

Singhal said that it also helps an investor to find out whether the investment instrument is suitable to meet one’s investment goal.

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