EUPHORIA

PRESENTATION
CREATED BY TEAM PHEONIX
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 WHAT IS CHIT FUND
• a chit fund scheme, a group of people contribute
periodically towards the chit value for a duration
equal to the number of investors (members or
subscribers). The amount collected is given to
the person, who is either selected through a
lucky draw (lottery system) or an auction.
Unregistered Chit Funds are unorganized and run
by friends, relatives or personal groups. They are
personal contracts that do not depend on market
forces but more on personal ties.
TYPES OF CHIT FUNDS
• REGISTER CHIT FUND
• UNREGISTERED CHIT FUND
• Online digital chit funds
• Organized chit funds
• Special purpose chit funds
 ACTS

• Union government – Chit Fund Act, 1982

• Kerela :- Kerela Chit Funds Rules 2012 & Amendment 2016
• Tamil Nadu :- Tamil Nadu Chit Funds Act, 1961
• Karnataka :- The Chit Funds (Karnataka) rules, 1983
• Andhra Pradesh:- The Andhra Pradesh Chit Funds Act, 1971
• New Delhi :- The Chit Funds Act, 1982 and Delhi Chit Funds rules,
2007
How chit fund work
Dark side of chit funds
 A D H A M
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Saradha financial scam
• The Saradha group financial scandal was a major
financial scam and political scandal caused by the
collapsed of a Ponzi scheme run by Saradha group a
consortium of over 200 private companies that was
believe to be running collective investment scheme
popularity but incorrectly referred to as chit fund in
Eastern India
• The group collected around US$ 4-6 billion from
over 1.7 million depositors before it collapsed in
April 2013
 What is saradha chit fund scam
 The Saradha Group financial scandal is popularly known as saradha chit
fund scam
It’s a financial scam that was caused by the collapse of a Ponzi scheme run
by Saradha Group in 2013
Saradha Group is a consortium of over 200 private companies
All 200 companies were running a wide variety of collective investment
schemes (chit fund) throughout EAST India, especially in West Bengal,
Odisha, Assam
Collapsed of Saradha Group in 2013 caused a loss of Rs 200-300 billion to
over 17 lakh investors
Enforcement Directorate (ED) has completed its investigation into the scam,
currently , CBI has been probing the scam
 .

• Saradha group has several branches in West Bengal, Jharkhand,

Assam, Odisha Chhattisgarh and other states to get public deposit
• Scam summed up to Rs. 2460 crore and about 80% of money still
unpaid to depositors
• They used three scheme namely monthly income deposit, fixed
deposit and recurring deposit
Marketing Strategy used for chit fund
1. Influence marketing strategy 2. promotions market strategy
Marketing strategies
3. Digital marketing 4. outbound marketing
5. word of mouth marketing
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 Popular chit funds in India
1. Mysore sales International Ltd 2. margadarasi chits
Popular chit funds in India
3. Shriram chits 4. Kerala state financial Enterprise