Why should you invest in Chit Fund?

• Chit Fund is a unique scheme incorporating the aspects of a recurring deposit and an advance scheme. In Chit Fund, the subscriber has an opportunity to bid and avail of advance which amounts to a certain percentage of the total denomination of the chit, whereas in recurring deposit the advance can be availed only on the paid-up amount.
• By joining a chit fund, a person is forced to save a small part of his income, to meet his planned/unplanned investment or expenditure.
• All Persons Joining a chit group are forced to save a small amount of their income to finance their dream projects such as-purchasing a plot or building a house or meeting marriage expenses or buying domestic articles or discharging an existing liability etc.
• In the case of contingency, borrowing from the chit fund is much easier, simpler, faster and cheaper than borrowing from a bank.
• The chit loss is normally lower than the market rate of interest in case a person wants to save till the last, the return a subscriber get’s byways of chit dividends is much higher than interest from the bank on recurring deposits.
• Chit Funds provide easier access to credit.
• It is a kind of compulsory saving scheme.
• Chit Funds scheme’s posses a predetermined chit value and duration. The amount collected from members is auctioned out every month. So there is no chance of accumulation of funds in any place.
• Chit Funds play a vital role in supporting the middle class as well as small and medium scale industries.
• The great advantage would be the availability of immediate funds in times of urgent need.
• At every point in time, the chit fund company pays the prized subscriber more money, than what it has collected from the prized subscriber.