Chit Funds can give you higher returns than bank deposits, if people bid for lower amounts. It also helps you accumulate money for say a marriage, education or any other requirements. Now, we know that people do not like chit funds, as they are not perceived to be safe. But, we are suggesting just safe chit funds, some of which are backed by government undertakings.
Mysore Sales International
Mysore Sales International Ltd, is a state government undertaking and it is owned by the Government of Karnataka.
Again, while we paint chit funds, as schemes that are plagued with worries like fraud, that is not true. There are many artisans and small time shopkeepers, who put money in chit funds.
Most of the large chit funds have been run for decades now.
Kerala State Financial Enterprises – Chitties
Kerala State Financial Enterprise (KSFE), Chit Funds or Chitties are safe because KSFE itself is backed by government of Kerala. It has been in existence since 1969 and has lakhs of subscribers to its chit fund scheme, more popularly called chitties in Kerala.
As per the Chitty Act of the Kerala State, the maximum reduction is 25 per cent. So, the bids cannot be conducted below that. There is daily door-to-door collection that is possible.
This is a part of the renowned Shriram Group and Shriram Chits has been running for 40 years now.
In all auctions commencing from the 2nd installment, subscribers can bid up to a maximum of 40% only.
Interestingly, you can now make payments for the Shriram Chits through the online mode. You can make payments for very small sums and build a corpus for a marriage or other requirements from time to time.
Margadarsi Chit Fund
This chit fund is a part of the renowned Ramoji Rao group. Once again this is a five decades only company which started with 2 employees. You can subscribe with a minimum amount of Rs 200 for 25 months.
There are various other months and amounts that vary.
This article is strictly for informational purposes only. It is not a solicitation to buy, sell in chit funds nor any other financial instruments. Greynium Information Technologies Pvt Ltd, its subsidiaries, associates and the author of this article do not accept culpability for losses and/or damages arising based on information in this article.