Is Mutual fund a chit fund?

CHIT FUNDS — Investors money is pooled and is lend to needy people along with investing at some interest rates and the income earned is shared with everyone. MUTUAL FUNDS — It is an saving cum investment option. CHIT FUNDS — It is a saving cum borrowing option cum investment.

How much should I invest in mutual funds every month?

Therefore, your investments in mutual funds should be 20\% of your monthly salary. If you are able to cut down on spending on wants, then you can utilise the same in increasing your mutual fund investment.

What is the difference between mutual funds and chit funds?

Whereas, mutual funds, on the other hand, pools money from different sources and invest in stocks.You are allocated units of mutual funds from the AMC of your choice. Then you get some returns for the money invested. All your transactions are regulated by SEBI and it is always trustworthy, unlike chit funds.

Are chit funds safe and reliable?

Chit funds are not regulated by any such government body, which is easily exploited by fraudsters. The strict regulation ensures that mutual funds are safe and reliable. There is no such assurance of security when it comes to chit funds. In fact, there have been many chit fund embezzlement cases in the recent past.

Are there any chit funds in other countries?

Chit funds limit only to India. Normally we do not find chit funds in any other part of the world. Some of the most famous and successful chit fund houses are: Pooling of investors money and investing it in securities based on investment standards and policies.

Is 12\% a pathetic return in chit fund?

This is just a pathetic return!!! This is an eye-opener for people who invest in chit fund before doing the calculation. The same amount of Rs 8,88,800 invested equally each month in a mutual fund would have fetched around 11 lakh at 12\% annual return.