Never let your money sit idle, make it work harder than you do.

Investing is a lifelong process. The sooner you start; the better off you’ll be in the long run. It’s best to start saving and investing as soon as you start earning money. The discipline and skills you learn will benefit you for the rest of your life. But no matter how old you are when you start thinking seriously about saving and investing, it’s never too late to begin.

There are two compelling reason to save using chits

  1. A higher rate of return in comparison to a bank deposit.
  2. They are liquid in nature. A chit can be used to meet any unforeseen expenditure. It can also be used to meet a planned expenditure.

A chit is the only financial product that allows you to save and borrow. The rate of return generated by saving using a chit is much higher than what is offered by banks. The risk involved in saving using a chit would depend on the chit fund company. We would recommend using a registered chit fund company which has been operating for at least a decade or more with a proven track record. While parking your hard-earned money as a fixed deposit with a bank would entail no or negligible risk and similarly generate less returns, rotating your funds using a chit fund would entail low risk while generating competitive returns annually depending upon which month you lift the chit.

An intelligent investor is one who diversifies his risk portfolio. Entire disposable income or surplus income should not be invested in any one single financial product alone. Investments must be spread across various financial products like Insurance, Stocks, Mutual Funds, Bank Deposits and Chits.

The individual investor should act consistently as an investor and not as a speculator. This means that he should be able to justify every purchase he makes and each price he pays by impersonal, objective reasoning that satisfies him that he is getting more than his money’s worth for his purchase – Mark Cuban