7 Things to Know About Chit Funds
Purpose:
Saving is the most important purpose behind the people’s interest of investment in chit funds. It allows the investor to invest according to his earnings and in times of emergency he or she can draw the investment within short span of time, but should pay the monthly investment till the last month of the agreed period. The process is similar to the recurring deposit schemes with some tweaks.
Risk factor:
Since chit fund schemes are widely popular in the country and mostly the families that earn on monthly basis tend to invest in such schemes. Hence, there are several instances in which fraud companies have cheated the investors and evanescent overnight. Hence a profound check on the track recodes of the company is advised by legal experts.
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