Chit Fund will helps someone to fulfill his/her financial goals without depending on a loan. It is a disciplined way of materializing the wishes with his/her own fund. Ex: – Purchase of Car, Construction/Renovation of house, marriage etc.
Compulsorily Saving & Investment
Chits provide a mode of savings for people who aspire to save for the future by setting apart a portion of their income. A chit subscriber needs to pay the amount month on month for chit fund, this would be a good habit of regular savings.
Higher Returns on Investment
Monthly dividend is the return on Chit Investment which is controlled by the same chit group itself. Chit Fund can give more return compared to bank fixed deposit depending upon the dynamism of the group.
Solution of Unplanned (emergency) & Planned expenditure
The unique “save and borrow” feature of Chit Fund helps the subscriber to meet his/her planned and unplanned(emergency) expenditure.
Another basket of Investment (Diversification of portfolio)
An effective financial planning involves diversification of portfolio. It is better to invest the disposable income or surplus income in different baskets. Investments must spread across various financial products like Insurance, Stocks, Mutual Funds, Bank Deposits and Chits
Least affected by Market fluctuation
Unlike capital market investments, gold and real estate investments, Chit fund are not affected by market changes/fluctuations.