Question

Consumer attitude towards investing in chit funds

Answer 1

The nature of financial markets has changed drastically. Investing money has become a very complex task because of the huge number of savings and investment companies and products offered by them, terms and conditions of investments, and prevalent complex rules and regulations. Most of the investors, particularly rural investors, are found to be unaware about investment avenues and rules and regulations. In spite of remarkable growth of our economy and increasing income levels of people, the pace of savings mobilization is lower in India. Rural savings are not mobilized and invested properly. Investment is an economic activity which creates capital required for various sectors of the economy. So, every earning person should be motivated to save and invest his/her money. The study attempted to find out the awareness levels of rural investors about various investment avenues, their preferences, and considerations for investing money. A sample of 300 respondents was selected from four villages from Sillod block of Aurangabad district, Maharashtra. The major focus of the study was on investigating whether there was a difference between investment awareness levels and educational qualifications of male and female rural investors. The study disclosed that there was no significant difference in awareness levels of rural male and female investors and their educational qualifications. The investment preference order of the respondents indicated that they wished to park their investments in 'safe' options only. Bank deposits, gold and jewelry, real estate were popular investment avenues for a majority of the investors.
A Study of Investment Awareness and Patterns of Savings and Investments by Rural Investors.

Answer 2

Consumers have a positive attitude towards chit funds since it gives then fast and easy access to immediate requirement of liquid funds

Explanation:

• Chit funds are made by a group of people with a common interest and they contribute some amount of money towards a fund which is made by them. The money in the fund is utilized for the benefit of the people who are part of the group. One of the members of the group gets the money which is contributed by the group. This process keeps moving in a cycle where the people keep contributing every month and different individual members get the benefit of the funds.
• A lot of investors these day prefer to contribute to chit funds since it gives them fast access to money and funds. they have a feeling that it is a safe method of investment. There are many people who have quit their jobs for starting the business of chit funds. There are many chit funds which are registered and they follow the legalities associated with the process of funding. There are many business men who are involved in chit funds for using liquid funds when they have a requirement.

To know more about chit fund

Chit Fund companies are regulated by​ __________

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