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. 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 12-16% 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.