Is a chit fund a good saving instrument to invest money?

If chosen well, chit fund is definitely a good saving method to invest money.

Chit funds, a saving avenue has become popular within the short duration. There are many reasons to consider chit fund as a scam.

But, at the whole is a misconception that made chit funds under scam lists. There are around 10.000 registered chit fund companies which brings delight to the people’s money. The members of the chit funds are going toward the right saving method.

Around 10,000 registered chit funds, the Kerala government has the largest existence since 1969. Many financial advisors say that chit funds are the good investments that promotes a set of strict rules to avoid any mishaps.

We are providing our chit fund software for many registered companies to ease up their work.

How to choose chit fund company well?

Small investors consider it an option to enforce them in the monthly investment discipline. In the case of unbanked rural investor, they consider it a crucial step. They wish to choose the best chit fund company with years of experience.

It is better to research more before you choose investing in chit funds. Few people confuse chit funds with the kitty party.

A chit fund is a traditional savings and borrowing mechanism. But, in kitty party, the members pool along with a specified amount monthly and one among them gets the entire amount. The process is repeated every month.

The difference between chit and kitty party is that the winning member is not chosen by the draw of lots instead through an auction.

So, the below image explains the beginner to know how much they gain through a chit fund scheme chosen at the experienced chit fund organisation.

After explaining what is chit fund and how to choose a good one, the next question in the people’s mind is whether to save or borrow.

As explained earlier, chit fund is both a saving and borrowing option. If you did not bid until the end of the scheme, it is like a recurring deposit. You will get back your money at the end. Though the sum is fixed, the returns may depend on the distributed surplus over the months.

For more details visit: Chit Fund Software Live Demo or contact us at toll free: 1800-200-1766 / 7397723052.