How to Triple Your Money From Your Investment?

How to Triple Your Money From Your Investment? By Jim Torres

There is no question of whether you can triple your money from your investment. The only thing you need to find out is how long it takes to make it happen. To triple your money means to earn extra $2 from the $1 you have initially to make a total of $3. If your investment tools give you an annual rate of return of 11.61%, your money will become triple in 10 years' time.

Can Mutual Funds Do the Job?
If you are giving yourself 10 years or so, then the answer is a "yes". It is always possible for mutual funds to gain an extra 200% returns in the given period. What you to do is to manage your allocation more actively. For sure, you need to adjust your weightage of your portfolio more towards equity funds. It is alright to put a 20% of bond funds to protect the value of your investment should the equity funds fall.

Use the Compounding Effect
Reinvest your dividends or gains. This is very important. To triple your money in 10 years is not about getting a remarkable return in a year and depleting it in another year by taking unnecessary risks. Therefore, you need a more diversified portfolio.

What About Tripling Your Money in 15 Years?
If you have 15 years, then the chances of getting your money tripled are even higher. What you need is an annual rate of return of 7.6% from your investment vehicles and you may look for tools with steady growth. Dividend stocks are a good option. Property and land could also be good tools as these are assets that could grow over time.

A risk taker can allocate his portfolio in such a way that 60% of his investment monies to be put in emerging-markets equity funds and 40% in global market equity funds. On the other hand, a conservative investor may choose high-dividend-yielding stocks or good quality bonds which generate consistent annual returns.

To triple your money in 10 to 15 years is a realistic aim. Do not forget to review your investment portfolio from time to time, so you could always on the right track.

If you aim to triple your money in a shorter period, you need different investment strategies. Visit our Life Planning website to find out how you can triple your money in 5 years.

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