PF Chit Funds is part of Vedavathi Finance Group of companies. The group was established in the year 1967. It began by catering to the financial needs of its customers in and around Sowcarpet, Chennai but slowly expanded to customers all around the city. Presently, it caters to customers across the country and Overseas too some of its customers located in different parts of the world.
PF Chit Funds believes in the theory of ‘Serve the customers when they need most ’ and has gained enormous experience in guiding its customers on various different financial needs both personally and professionally. Currently the company is managed by Mr S V Prasada Rao, Managing Director (For the past 47 years) and his son Mr S S Suresh Kumar, Executive Director (For the past 8 years).
Chit Fund is an attractive Investment Option which caters to people from all walks of life. The uniqueness of Chit Fund as a method of Financial Planning stems from the fact that, it is both a tool for saving and borrowing. In other words, it serves the dual purpose of being an investment for your savings and in times of need the Subscriber can bid for the Prize Amount in order to meet any unexpected expenditure.
If we consider a chit value of Rs.100,000 with 40 members in the group each member has to contribute Rs.2500 whereby (40 X 2500) Rs.100,000 is collected.
Auction is conducted and a successful bidder takes the prized amount of Rs 75000 thereby foregoing 25000 Next month each subscriber pays Rs 2500 -500 (dividend) = Rs 2000
This cycle repeats every month
Most significiant benefit of Chit funds is that it will inculcate the habit of saving a certain amount every month to create an emergecy corpus.
The most common uses of chit fund are listed below:
The non prized subscriber who is a saving member upto the last installments gets dividend which is comparatively higher than the interest that are accrued by way of Recurring Deposit Schemes
Investments in chits is safe without having to worry about fluctuations in the market.
PF Chit Funds is the chit fund arm of Vedavathi Finance group of companies serving more than 50+ years in Chennai and across the country.