How do we calculate Chit Returns….

POSTED BY sunil ON April 19, 2013 1:18 pm COMMENTS (3)

One of my cousin sarted investing in Chit Funds….

Total Value of the Fund : 110,000

Total payable Months : 22

Paid Till Now : 8 Months

Paid Money till now : 27290 (Actual was 5000 per month, and he paid till now 27290, due to reduction in payment amount because other people had taken out money)

As of now if he calculates profit normally it is coming as 11.5%…. (Considering going forward he pays 5000 per month without any reduction)

And the Chit Matures on 10-Jun-14.

Now is this calculation correct?

***** I do understand this is a HIGH RISK bussiness, but want to understand the Returns part.

3 replies on this article “How do we calculate Chit Returns….”

  1. Dear Sunil, not only for Chit, XIRR can be used for any other investment also.

    Thanks

    Ashal

  2. sunil says:

    Thanks FFC.

  3. Please use a XIRR function in EXCEL to calculate this.

    http://freefincal.wordpress.com/xirr-returns-calculator/

    There are also many online XIRR calculators available.

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