Chit fund - Money Control - Chit Mobile App
Chit means a transaction whether called chit, chit fund, chitty, kuree or by any other name by or under which a person enters into an agreement with a specified number of persons that every one of them shall subscribe a certain sum of money (or a certain quantity of grain instead) by way of periodical installments over a definite period and that each such subscriber shall, in his turn, as determined by lot or by auction or by tender or in such other manner as may be specified in the chit agreement, be entitled to the prize amount.
http://chitfundSoftware.blogspot.in/ http://webchitfundSoftware.blogspot.in/ http://chitfundsoftwarein.blogspot.in/ Mr. Santhosh Kumar
Mobile: +91-9590355556 & 09886461360 / 9916807666
http://chitfundsoftware.in E-Mail:
info@websoftex.in
Websoftex Software Solution Pvt Ltd No: 240/A, 3rd Cross, Mathikere, Near SBM Bank, Bangalore-560054, Karnataka, India.
Chit Fund Mobile - Chit Mobile Apps COST AND RETURN ON CHITS Our examination of the cost and returns on Chits has revealed that the economics of Chits lie in viewing them as savings-cum-borrowing instruments. The financial return and cost of Chits depend on the prevailing rate of interest, installments at which prize money is obtained, the method of discount followed, the "sala' size and the duration of the Chit. Subject to these, it was found that, as a pure savings avenue, the rate of return on Chits is not attractive for most of the subscribers when we consider the opportunity cost of the subscription money. And if we look at Chits as a pure borrowing avenue, it is cheaper as compared to bank loans. However, if we look at the Chit subscribers as savers-cum-borrowers, as indeed they should be, it makes sense to join Chits. The actual return or gain/loss they make from Chits will depend, as mentioned earlier, on the prevailing interest rates, how early they get the prize money, the method of discount followed etc.
There is also another dimension to this question, i.e., for many subscribers Chitty is a forced saving. For such persons these funds would not have been saved otherwise and hence there is practically no opportunity cost Involved. In such cases, the gain on the Chits will be all the more higher and can be estimated as the sum of the compound interest that could be earned on prize amount and the difference between the loss on bidding and the total of discount accrued to the subscriber.
Mr. Santhosh Kumar
Mobile: +91-9590355556 & 09886461360 / 9916807666
http://chitfundsoftware.in E-Mail:
info@websoftex.in
Websoftex Software Solution Pvt Ltd No: 240/A, 3rd Cross, Mathikere, Near SBM Bank, Bangalore-560054, Karnataka, India.