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Chit Funds Market.

Investing in chit fund market

Investing in BONDs

Investing In Chit Funds

Apart from investments in shares, debentures, mutual funds, gold, investment in chit fund is another option to get fast and good return while there are equal risks prevail. The system works in several groups each one with a pre-determined target amount with minimum fixed monthly installments to be made.

For the first four months, no bidding is allowed by any subscriber to the group scheme and from 5th month on wards, the bidding starts when a member who is in urgent need of money bid for certain amount and if there is another bidder offering better terms, the latter gets benefited and is able to withdraw the sum bid.

To get the cash actually on hand, the chit fund organization has certain rules and regulations to be complied with like providing security and surety of a reputed person and the final bidder has to comply with the same with a commitment to pay the remaining installments up to the date of last installment failing which the chit fund company can call the surety to pay the amount due.




There have been many fly-by-night individuals who start a chit fund with lot of fanfares offering attractive gifts during inaugural times in order to lure the gullible public by assuring best returns in the quickest possible time. Most people are unaware of the Govt. provisions relating to chit fund operations and if the chit fund promoters are complying with the same though there are many reputed chit fund operators functioning efficiently.

People only see a huge profit within a short time and blindly invest only to find the shutters of the chit fund office is closed indefinitely and by the time they realize to have been duped, the promoters would have gone far with the money. Government has not provided any stricture except asking the investors to exercise caution.







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