India’s investment scenario is drastically evolving as there is a higher number of emerging financial opportunities. Today’s market is dynamic and volatile; however, making smart and income-focused investment decisions can save you from the risks of losing it all. The good news is that numerous low-risk investment options offer good returns, helping investors protect their hard-earned money and achieve financial stability, even when the market suffers a downturn.
To safeguard your portfolio in the face of volatile markets, it’s vital to do thorough homework regarding the most effective strategies to preserve capital while minimizing losses. You may have been receiving good returns on investing in mutual funds and stocks, but they often come with higher risks.
However, if you want to opt for a traditional investment option, chit funds may be one of the safe investments with good returns in India. So, here are a few things to know while searching for a smart investment option offering significant returns.
What are Chit Funds?
Chit funds are traditional investment tools popular in India, in which a group of people pool a certain sum regularly. During every cycle, one member receives the entire pooled money. The cycle continues until every member in that group gets their share of fortune. Chit funds are a great way to access funds in times of emergency. They also serve as a savings tool.
How Do Chit Funds Work?
Chit funds are a kind of mutual agreement where investors pool their money together. Generally, the group is required to pool a fixed amount of capital before a fixed monthly deadline. The group may also have a manager or foreman who manages the entire pooling, disbursement, and savings procedures. The beneficiary for every cycle may be determined based on lottery or auction results, according to the group’s terms and policies, and agreement.
Usually, the participant who bids at the highest value is the one who receives the pool money. Participants who have received the capital will not be eligible to become beneficiaries again until the beginning of a new cycle. However, they are still required to contribute to the pot of money. Therefore, the process ensures that everybody receives their share of financial benefits.
In India, chit funds are regulated, as per the Chit Funds Act of 1982. The chit funds can operate only after the state government offers express sanction. The act enables the manager or foreman of the chit fund to charge the investors up to 5% of the entire fund value.
Besides, the foreman would be required to pay GST for registered chit funds based on the commissions they have received. At present, an 18% GST is being charged on the manager's commission, since it falls under the GST law of ‘Supply of Service’.
Benefits of Chit Funds
If you are planning a robust investment with good returns, consider chit funds, which serve the following benefits.
- Urgent Financial Assistance: Chit funds provide instant financial aid and support to investors. They can use their funds with no restrictions, thus remaining covered in times of need.
- Boost Social Networking: Chit funds are usually organized by a group of individuals willing to gain financial stability. They usually belong to a certain community or geographic area. Therefore, pooling for chit funds promotes stronger networking and social bonding opportunities.
- Develop an Investment Discipline: Chit funds are an excellent way to develop a consistent investment discipline, which ensures you are making wise use of your money. It is a great saving option without requiring investors to keep track of market volatility and investment performance 24/7.
Why Choose Margadarsi Chit Fund?
Margadarsi Chit Fund is known for providing the best investment plan with good returns. The procedure of investing with us is straightforward, and the returns are noteworthy. Here are the benefits of planning your investments with Margadarsi Chit Fund.
- Offers Good Yield of Dividends: Margadarsi Chit Fund provide significant returns through dividends, thus boosting your entire investment value.
- Ensures Seamless Savings and Borrowings: Our chit fund offer a structured and organized way to save regularly. At the same time, you can gain quick access to the funds through an auction system.
- Remains Unaffected by Market Conditions: Margadarsi Chit Fund operate independently without being affected by market volatility and fluctuations. Thus, it ensures good returns irrespective of the nation’s economic changes.
- Offers Early Withdrawal Provisions: Participants can withdraw large sums from the pooled amount even during the initial months, based on auction outcomes.
Effortless Process: Margadarsi Chit Fund ensures that participants go through minimal effort while managing monthly contributions. Therefore, it’s easy for investors to implement a steady and consistent investment discipline into their monthly investing plans.
Final Words
Chit funds are one of the most popular and effective investment options trusted by investors willing to fulfill their long-term investment goals. Margadarsi Chit Fund stand out as an independent investment opportunity as they enable investors to grow significant wealth and gain financial security. However, it is always advised to do your homework well before making investment decisions to safeguard your hard-earned money.
