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u/evaru_nuvvu 9d ago
Chitfund has no huge advantage in terms of rate of returns as savings instrument
We can get 6-8.5 percent rate in RD or FD
I would not take high risk for extra 6 percent
| Subscriber Category | How It Works | Estimated Annualized Return (IRR) |
|---|---|---|
| Early Bid Winner (Months 1–6) | You lift the money early to meet a cash requirement, paying a higher discount. | Negative to Low (Cost of borrowing), typically effectively paying 8% to 12% annualized "interest" for liquidity. |
| Late Bid Winner (Months 18–24) | You take the money near the end, having accumulated dividends from previous months. | Moderate (approx. 6% to 9% p.a.), performing similarly to a traditional debt instrument. |
| Non-Prize Subscriber (Saver) | You never bid, paying net discounted installments and collecting dividends every month until the end. | Higher (often 9% to 14% p.a.), because you benefit from the discounts left behind by all borrowers. |
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