Why Should You Invest in Chits?
Why Should You Invest in Chits?
Investments or Savings are a vital part of everyone’s life to grow to the next level financially. It is also very important to choose aright financial savings or investment option to keep your investments safe and secure. Let us look at this scenario with a small story.
Meet Mr Anurag Gupta, a middle-class software employee with a salary of Rs. 75000 take-home per month. His monthly expenses are around Rs. 70000 and want to save Rs. 5000 per month. Let us look at the options available. Anurag’s friends have suggested him to explore three options that are most suitable for a middle class working professional. The three options are Mutual Funds, Recurring Deposits and Chit Funds.
Anurag is now in a dilemma to choose the right option. Let us make an effort to help him out.
Let’s assume a scenario where Anurag goes with Mutual Funds. Anurag will be happy with Mutual Funds as he can earn higher returns between 10% to 15%. He will be disappointed with Mutual Funds as the risk is also high which means the chances of losing money is also high. Anurag made an effort by speaking to multiple Mutual Fund companies representatives trying to find a suitable plan for his investment. He found that it is not easy to understand the financial language being a software employee. He also realized, he should have the high product knowledge to regulate his investments or savings in Mutual Funds.
Let’s assume a scenario where Anurag goes with Recurring Deposits. He finds it very easy in understanding the product and the investment/ saving schedules. He is also happy that he is going with a renowned bank that offers this service so that his investments are safe and secure.
He will be disappointed with low returns around 6% to 7% which is half of the Mutual Funds. He has decided not to invest with Recurring Deposits as there is no ability to borrow when he needs money on a priority basis.
Anurag is now looking for an option where returns are decent enough plus he should have an ability to borrow anytime when needs money on a priority basis. At the same time, he expects his investments to be safe and secure. He heard from his friends and neighbourhood that chits are a good option. He is a little worried about the security and protection of his investments.
With these thoughts, Anurag happened to meet his childhood friend Sam Ahluwalia for a dinner, where he expressed his dilemma about the savings option. Sam is an investment advisor by profession and has a readymade answer for Anurag. Sam advised Anurag to go with registered eChits company for his investments/savings. Registered chit funds have a legal cover, hence investments/savings are safe. It is very easy to understand the scheme and guidelines. It offers decent returns between 12% to 14% with low risk. Above all, it provides an ability to borrow when you need funds on a priority basis. eChits enables you to manage your chit anytime, anywhere.
Anurag has made his decision to invest with eChits on the advice of Sam and is very happy with the choice that gave him everything he has been looking for. He is super excited with the eChits features that allowed him to manage his chit over an app without the need of physically meeting a chit representative. This is how Anurag choose to invest/save in chits ahead of Mutual Funds and Recurring Deposits.
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