Chit Fund in comparison with sweep account (9% interest) ?

POSTED BY Sribalaji_ms ON February 17, 2014 10:54 am COMMENTS (2)

From the past 9 years, I am using chitfund organised by my father-in-law (hence no risk). Recently I felt it is not giving me proper benefit as I am continueing till the end.

Need guidance to understand whether it is beneficial to continue chitfund or invest in Mutual funds/sweep (9% interest). Will it be beneficial if I join the chitfund and go for auction on the first month??

As I need to take a decision quickly, request the feedback as soon as possible.

Regards,

Balaji

2 replies on this article “Chit Fund in comparison with sweep account (9% interest) ?”

  1. Sumit says:
    February 17, 2014 at 12:29 pm

    An average large-cap mutual fund generated 12% – 15% annualized return in last 12 years, Tax free.
    Though past performance is no guarantee for future return, but pick up any 10 year period and equity return will amaze you. Long term (more than 10 years) equity return should beat any fixed income product and inflation much comfortably. Give it a thought.

    Reply
  2. ashalanshu says:
    February 17, 2014 at 11:42 am

    Dear Balaji, what about taxation on chits as well as FD etc?

    Thanks

    Ashal

    Reply

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