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Is chit fund a good investment?

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Is chit fund a good investment?

Chit funds are not necessarily a bad investment. It has a bad reputation because it has been misused in the past to scam naive investors. There are Government-run and registered chit funds that are safe to invest in. On the other hand, recurring deposit are a much safer investment.

Are chit funds legal?

The registered chit funds are safe as the Chit Fund Act, 1982 regulates them. Under this law, the chit fund business can only be registered by its respective state governments. During the registration, the owner has to pay a security deposit with the registrar of chits, which is 100\% of the chit value.

How does Shriram chit fund work?

The Pooled funds every month are offered to the subscribers at monthly AUCTIONS and the subscriber who BIDS for the highest DISCOUNT is declared the PRIZE WINNER and given the PRIZE AMOUNT on proper security. A Prized subscriber also should continue to pay the subscriptions till the termination of the chit.

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How do I start a chit fund?

Steps to Register:

  1. Apply for Digital Signature Certificate (DSC) and Director Identification Number (DIN)
  2. Apply for Name endorsement of Chit Fund Company.
  3. Set up Reports as per Chit Fund Company goals.
  4. Least Capital Requirement for Chit Fund Company.
  5. Apply for Chit Fund Company enrollment.

How can I start a chit fund in Karnataka?

Apply In-Person:

  1. Any valid registered Private or Public limited company intends to carry Chit Fund Business should apply for registration of the company with the Registrar cooperative societies (is the Registrar of Chit Fund).
  2. Office contact details Link.
  3. Go to the respective office.

Which is best chit funds?

  • Shriram Chits is the largest chit funds entity in India.
  • Shriram Chits boasts the best record for timely disbursement of funds among all Chit Funds and offers excellent customer service for a community of 22,00,000 Subscribers.
  • Shriram Chits started operations in 1974 with a single branch.

How do I start Chitti?

To start a chit, a chit fund company usually advertises a chit fund scheme and enrols interested members. All chit fund schemes have a period, contribution and a set of members. The number of members in the chit will equal to the period, and each of the members requires to contribute a fixed amount for each period.

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How do I open a chit fund?

How do you calculate chit?

Amount collected per month = 20*1000 = Rs. 20, 000 – this is known as the Chit Amount. Once the first month’s payment is received, bids are invited from all subscribers. Any subscriber, who is in need of money, can bid for the chit amount, at a lower amount than it.