Is chit funds 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.

Which fund has the lowest risk?

List of Low Risk Mutual Funds in India

Fund Name	Category	Risk
Mirae Asset Overnight Fund	Debt	Low
BOI AXA Overnight Fund	Debt	Low
L Arbitrage Opportunities Fund	Hybrid	Low
UTI Arbitrage Fund	Hybrid	Low

What is the difference between mutual funds and chit funds?

CHIT FUNDS – Regulator of chit funds is the Registrar of Chits appointed by respective state governments under Section 61 of Chit Funds Act 1982. MUTUAL FUNDS – It is an saving cum investment option. CHIT FUNDS – It is a saving cum borrowing option cum investment.

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.