How good are the chit funds?

It totally depends on the agreement you’ve entered into with the foreman responsible for conducting the chit fund program.

There are varied types of agreements that foreman enters into with different sections. It generally is a continuing installments for certain period and then a lucky draw for the prize winner.

Investing in a chit fund should be done only if you are in need of funds (return on your investment) in near future that a bank cannot give in that period of time. Otherwise, it will be wise not to invest in a chit fund.

Author: Kumar

Websoftex Software Solutions Private Limited is a Software company, extending its services in Website Designing & Development-Custom Software Development and Mobile.

1 thought on “How good are the chit funds?”

  1. so, what do you guys think the capping of mortgage interest deduction to 28% will do to the high end? (lets say you are a high-end owner, in the 35% bracket, you now will only be able to deduct you mortgage interest at 28%). Efieltfvecy, this raises your after tax mortgage rate by about .5%.

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