How Chit Fund Works? ஏலசீட்டு லாபமா நஷ்டமா? Is it profitable?
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- Опубликовано: 31 авг 2023
- A chit fund is a type of financial arrangement or savings scheme that is commonly used in India and some other countries. It combines elements of saving, borrowing, and investing within a group of people. The primary goal of a chit fund is to provide a means for individuals to pool their resources and access funds in a structured and regulated manner.
Here's how a chit fund typically works:
Formation: A chit fund is organized by a chit fund company or an individual known as the "foreman." The foreman acts as the organizer and administrator of the chit fund.
Group Formation: A group of individuals, often friends, family members, or acquaintances, come together to form a chit fund group. Each member agrees to contribute a fixed amount of money to the fund periodically, usually on a monthly basis. This contribution forms the pool of funds that will be utilized within the chit fund.
Chit Auction: Each period (usually a month), a chit auction is conducted among the members. In this auction, members bid for the right to receive the total pool of funds for that period. The highest bidder wins the auction and receives the entire pool of funds for that period, minus a predetermined commission that goes to the chit fund company or foreman.
Disbursement: The member who wins the auction receives the pool of funds for that period. This can be useful for personal needs, emergencies, investments, or other financial purposes.
Continuation: The chit fund continues for a set number of periods, with each member winning the auction once. The order of auction can be predetermined or determined through a draw, ensuring that each member gets a turn to receive the pool of funds.
Final Payout: The chit fund continues until all members have received their payouts. The total amount that a member receives over the duration of the chit fund is usually the total contributions they made minus the commission paid to the chit fund company or foreman.
It's important to note that chit funds are regulated by laws in different countries, and there are both legitimate and illegitimate chit fund operations. Legitimate chit funds are registered and regulated by authorities to ensure the security and fairness of the transactions. However, there have been cases of fraudulent chit fund schemes that exploit participants, leading to financial losses.
Chit funds can be a useful financial tool for individuals who have a need for periodic lump-sum payments and are part of a trusted group. However, potential participants should always exercise caution, research the chit fund company or foreman, and ensure that the chit fund is registered and regulated by the appropriate authorities.
list of the various names used to refer to chit funds in India:
Chitty: Used in southern states like Kerala, Karnataka, and Tamil Nadu.
Kuri: Commonly used in West Bengal, Odisha, and parts of northeastern states.
Bitti: Utilized in Maharashtra and some western states.
Hundis: Seen in certain regions of India, though it can also refer to other financial instruments.
Prize Chits: Used in legal contexts to describe certain types of chit fund schemes.
Rotating Savings and Credit Associations (ROSCAs): A broader term for similar savings mechanisms.
Committee: Informally used to describe a chit fund arrangement in some regions.
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Minimum income people like us its very much useful without any tax obligations.
GST will be deducted in organized companies like Shriram chits
Seriously bro ithana varshama yarta ketalum venume confuse panni viduvanga clear explanation bro
After many decades 😂 Finally I go to know about this chit process bro❤
Appreciated for this video 🎉
Keep going!
Support from #bangalore❤
@Useful.Information.Boosan also bro, you can publish a shorts about the interest calculation on monthly basis and denoted in paisa/rupees. 50 paisa vatti, 2 rubai vatti. OOr side la use panuvom. Enaku understand panna romba naal achu. Makkalku use ful ah irukum.
2 rubai vatti na - for Rs.100 you will be paying 2 rs as interest for each month. You can explain in detail ....
Same here 😂 My father and his brother has been doing this since I knew the world of money, now only I'm understanding 😂 Thanks to Boosan boy
I have planned to watch atleast 1 or 2 of our videos daily from today, nicely explained.
Great Work !! I know most of the things you told about chit funds. It's really good to know extra information as you mentioned. Keep posting useful information like this bro..
I've chosen a simplified version of a Chit fund for illustration purposes, but it's important to note that there are various other types of Chit funds, including Kulukkal Chit, Commission Chit, Fixed Chit, and many more. Please feel free to share your thoughts and experiences in the comments section.
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@ Boosan , hi as a subscriber of yours I have posted this query long back at last happy to see the video as I doing this want to know whether is is good savings
Sip or chit fund which is better way for investment
Important timeline:
0:20 - What is Chit Funds
1:45 - Explanation With Example
5:01 - Advantages of Chit funds
5:34 - Big Disadvantages
In chit fund we can share the benefits with in the group .No brokerage ,no tax.People who are working to gether can do this.Very useful.
Learnt about chit funds for the first time. Thanks Boosan.
Good effort and Nice videos ... It was very useful and informative. Looking forward to see more such videos and your channel will get big hit.. 😊
1st time intha chit pathi enaku theliva puriyuthu bro very very tku so much anna
நல்ல விளக்கம்! 👍
Thanks man for responding to my query
It provided better clarity on the chit process, thanks!
Chit fund pathi ipa tha therinji Ketan thanks bro 🙏
Great explanation brother👏🏻👏🏻👏🏻
Semma clear explanation boosan 👌🏾👌🏾🔥
Super விளக்கம்
13:yearsa chit katturen - good explanation brother
நன்றி
VERY USEFUL VIDEO
Thankyou so much this type of excellent quality content vedios
Very clear explanation
Anna na chit fund company la tha work pandran ana chit fund ena nu therila ipo unga video va pathuthan understand pani irukan thanks Anna
Such a beautiful video ❤
Omg 😂 my father and his brothers has been running chit fund for years and I never understood the money flow, profit/loss before watching this video. Glad I found this. Now I have understood clearly especially because of that google sheet's pictorial explanation 🙏🏼🙏🏼
Very useful information
Thanks
Super information brother
Very good explanation bro
Correctta sonninga 🎉
Good video 🎉
Good information bro thank you... neriya idathula Elam month um china amount chettu nadathuravanga edupanga
Simply understand pannikkanumna enna panninalum long time invested ah iruntha epovum namakku palan irukku thank u bro relay good explanation ❤❤❤❤❤
Sooper boosan...kalakita...clear uh solita po
Bro, Dp you remember long back, I have commented. I did the same in excel to figure out XIRR of chit funds. Since, I have entered for 10 Months only, I got error message when computing XIRR in the excel
Super bro.
Anna thank u elachitu apdina ena ne theryadha enak theliva puriua vachinga...
Super bro
Nandrissss
Bro pls give some detailed explaining about investing in US stocks using Indian third party apps Vs direct US broker & what all the charges & procedures followed in it?
Bro,grow,zerodha app eallam close panneta index fund amount eappde withdrawal pannuvathu.please explain.
100 k for soon 🎉🎉🎉❤❤
Bro motilaal nastaq 100 sip bestaa
Ella ind money la nastaq 100 invest panrathu besta ethula ethu namaku dollar rate la returns kedaikum please replay
Yoo super ya neee ❤❤❤
Good
Coming September 10 Sovereign gold bond series 2 varuthu how to buy sovereign gold bond aprm SIP gold bond la iruka konjam theliva sonigana nalla irukum
In mutual fund la
SIp la monthly panrathum ,
One time(lum sum) la monthly oru date la manuala every month podurathum onnu thana?
Good but actually you can pick another chit fund example like chit fund organizers commission based chits.
Bro. Whether investing in couple of good nifty 50 index funds like UTI , ICICI is advisable or investing the same amount in any one of those completely will be advisable.
Really suppor brl
Bro, can we consider liquid funds instead of chit funds. The people who see chits as saving
Romba naal doubt clear ayittu😂
Bro which is the best app for stock market?
Anna neenga entha broker use panreenga solluvingala pls
What is the formula to get the interest rate for this chit sacings
Bro one doubt all nifty 50 have same 50 company but why return percentage will change
2 nd chit organazior adukura antha amount yaru katuvanga
4:46 - here also I feel you could have explained in detail. Your take on the XIRR. Or in general you could have added your views about the interest percentages.
Is my summary correct?
Technically, from saver perspective, there is a possibility that you can get far better return in this process 1) if you trust the parties involved, 2) if you invest till the end in a disciplined manner and 3)if there are high requirements for money among the group.
From the perspective of the people who is in need of cash, they get loan in an unorganised manner but with trust. But your loan interest depends on when you take it in the cycle(whtr in the beginning or towards the end) and also depends on the cash requirements of your peers. If many is in need of cash that month, you will be paying lot more.
Theoretically the savers might not get any interest if none took loans during the entire period. But it will never happen.
That's correct 💯
@@finance.boosanhow much cagr for chit fund
Bro last person na full amount kedachalum inflation erukum la... So long time pakumpoothu return kametha bro
Bro enaku oru doubt
Neenga sonna kanaku padi padha ellarume 87,500 dha pay pannirupanga appo balance 12,500 eppidi kidaikum
Zerodha has introduced PnL can you share that link.
Bro LIC and Lic surrender pathi oru video poodunga bro pls
In illustration, U said for 7th no one interested in bid, all will give 10,000 each .but who will get the amount 1 l
Agent or the chit organisers commission is missed here. It varies from 3-5%.
Bro 1st cheetu eduthu Share market la invest panna ? 10monthla 14% thandium profit pakka mudiumthana brooo (invest in looking good stock fundamental and Technical )
Sir I am driver. 1000 rupees vachu share market eppadi panuvathu.eppadi vanguvathu. Monthly pay pannuma sir. Ungalai eppadi condacd pannuvathu
bro traders INCOME TAX epdi File panum oru video podunga bro
They ll provide who is asking for high bid not lower one.
Organiser is taking commission of 5k for 1 lakh, which will be deducted from bid discount
Yes.. in this case our return will be -5%
Bro yarukume thevapadalana ena agum antha money? Yaru vacherupanga
Bitu money Ennga?
Organiser’s ku pogum la monthly Atha sollavae illa
Bro, Can you make a video on the stocks that could get impacted due to Cricket World cup 2023 ?
Angel one appla eppdii Intex fund vaagaradhuuu?
I want to repay my home loan via part payment. Would you suggest chit fund (father already participating)or Mutual fund to withdraw at 13th month so that i wouldn't need to pay tax. Please Advise
Interest rate epdi calculate panrathu bro??
Bro chit funds
Best a share Mark best a bro
Explain video please
Doubt bro ipo loan kekurangala apo avanga epadi interest kaduvanga
Hello Sir, Why don't you calculate XIRR for the one who takes withdrawal during first month? For him, the XIRR comes at around 82%. How to understand this?
Chit fund vs SIP ? Which one is best
Sir who asked high are low prices please check.?
எனக்கு ரொம்ப நாளா ஒரு சந்தேகம் myv3 ஒரு அப் காமிக்கிறாங்க அதுல இன்கம் எப்படி 😊 வருது அதைப்பற்றி ஒரு வீடியோபோடுங்க இதுல நிறைய பேரு பணம்கட்டி வருமானம் பண்றோம்னு சொல்றாங்க இதை நம்பலாமா
Can u explain whats the benefit the organizer get?
Bro I am 19 years old I need to inverse in low risk I can able to inverse 2000 per month it is my saving I not have any idea about inverse like which app is good I have no idea plz tell guide me bro this is help me for my future plans
Bro, GOLD Vs USD and USD Vs IND Explain please
Gold chit pathi video podunga bro
So in every case its a profit to the one who runs the chit? He's taking a lump of 1L in the second month but pays back only reduced amounts every month. So whoever doesn't take the chit till the end and whoever runs the chit are the only actual benefiters.
Bro, aana enga parents ella month um 10,000 katranga...atu epdi...
If no one take as loan in all months, what will happen?
So if nobody takes money for whole tenure. Then no profits ??
❤❤❤❤
I am earning around 24% annualised returns from chits. Even my 30 % salary into it. Mostly with my relatives. The person who organise the chit would take the first tym and he is not entitle for remaining chits he must have to pay full amount. The one who take lastly would be most beneficial. Dividend is only for those who do not take the chit.
Yes absolutely I m also doing this
Epadi bro 2nd month 1 lakh profit varudhu nadathuravarukku ?
@@financiallearner8321 as per my understanding he will be one among 10 members
@@financiallearner8321 adhu profit kedayadhu bro. He is organising so avar sethi vechuparu it is just a benefit for him to adjust the risk. Avaru apd first or second chit eduthukalana adhuku padhila 5% commission vechupanga. 100000 chit means 5000 avingaluku commission poirum meethi 95000 than elam nadakkum
@@financiallearner8321all has to pay 10k... The organiser will also be part of the chit
Middle only enjoy than the whole people
ஏலம் அதிகம் கேட்பவருக்கு தான் அந்த மாசம் பணம் கிடைக்கும் . குறைவாக கேட்பவருக்கு அல்ல.
Bro ungaludaya portfolio va engaluku kaata mudiuma
Ooru video va
Bro if my family member apply IPO can they use my UPI account for applying mandate ?? Iam Asking because they wont be maintaining amount in their bank account
Afaik, you have to use the same bank account linked to your demat account - which would mean one must use their own bank account
Hi
I am already asked details for my Mother
Brother I Have One Dobut
Oru Mutual fund la SIP La Investment Pannum Pothu SIP Date La Bank Account La Antha SIP Amount Sufficient Balance La Iruntha Etum Charge Varuma
360 rs charges varum
Monthly monthly bat amount 3 %
r 5 %