Investing in chit funds is not necessarily the easiest way to lose your savings, as is the general perception. Not all chit funds are ponzi schemes. If done right, such investments couid reap good profits. Here are a few pointers for those who would like to give it a shot:
1 INVEST IN chit schemes managed by reputed firms only. Look for ‘certificate of registration’ on the chit office premises
2 INVEST ONLY in registered schemes. Every individual scheme should have a ‘sanction certificate’ and ‘certificate of commencement’.
IT’S BETTER to park your money in chit funds that have a long track-record
BE WARY of chit schemes that promise very 1 high price money or returns
CHITS WITH wider investor base are always better than pools with fewer investors
6 IN THE CASE of registered chit funds, investors can approach state registrar of chit funds or deputy registrar of chits (at the district level) for complaint redressal
7 LEGAL RECOURSE is limited for people who have invested in unregistered chit funds