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people earn money as income and spent in their different activities but certain part of
the income is saved for future use , where do they save money and what is the
expected rate of return on their investment.

To know weather we can open a chit fund institution and can provide better return on
their principal this report is also made to know why do the society save money for
saving transact or precaution motive

In simple terms, a chit fund is a savings cum borrowings scheme, wherein a few
people (known as members or subscribers) come together and invest a fixed amount
every month for a fixed period.


To know the expected customers who may invest in our cheat fund institution

To know where do people save money

To know why do people save money

To know the expected rate of return they expect from their investment

To know the income of the people

To know the unsatisfied people with their return on their investment


Chit fund is a kind of savings scheme practiced in india A chit fund company is a
company that manages, conducts, or supervises such a chit fund, as defined in
Section of the Chit Funds Act, 1982. According to Section 2(b) of the chit Fund Act,

"Chit means a transaction whether called chit, chit fund, chitty, kuree or by any other
name by or under which a person enters into an agreement with a specified number of
persons that every one of them shall subscribe a certain sum of money (or a certain
quantity of grain instead) by way of periodical installments over a definite period and
that each such subscriber shall, in his turn, as determined by lot or by auction or by
tender or in such other manner as may be specified in the chit agreement, be entitled
to the prize amount"

Such chit fund schemes may be conducted by organised financial institutions, or may
be unorganised schemes conducted between friends or relatives. In some variations
of chit funds, the savings are for a specific purpose. Chit funds also played an
important role in the financial development of people of south Indian state of Kerala,
by providing easier access to credit. In Kerala, chitty (chit fund) is a common
phenomenon practiced by all sections of the society. A company named Kerala State
Financial Enterprise exists under the Kerala State Government, whose main business
activity is the chitty. Chit fund concept came into the eyes of people in 1800's when
Raja Rama Varma, ruler of erstwhile Cochin state gave a loan to a Syrian Christian
trader, by keeping a certain portion of it to himself for other expenses and later he
drew that money for the principle of equity.


srno Particular Page No

1. Is saving important for you?

From this pie diagram we want to show how much people think that saving is
important. Where 83 % people said yes and 17% said no

2. Where do you save money ?

In this diagram 10 people said that they save money in home 12 people said that they
save money in bank and 4 , 4 said that they save money in securities and other
3. How much do you save money from your income ?

From this pie diagram we want to present that how much people save from their
4. Why do you save money?

From this we come to know that 67 % of people save money for future use 26 %
people save money for investment where as 7% people save money for precaution

5. how much do you earn on monthly basis ?

From this chart we come to know what are the income of the people we have selected
as sample
6. what is the expected rate of return on your saving ?

From the answer of this question we come to know that lots of people are expecting
the return as 5-10%
7. how much rate of intrest do you actually get on your investment ?

From this chart we come to kow the rate of intrest thay are getting on their

34% of people don’t get any intrest as the save money in home whereas 23% people
get less than 5%, and 23 % of people 5-10%, 17% people get 10-15%, 3% people get
retrn more than 15 %

8. are you satisfied with the return you are getting on your investment ?

From this chart we come to know the satisfied and the dissatisfied people from the
sample where 73% people are not satisfied and only 27% of people are satisfied

From the above study we come to know that people think that saving important
nearby 83 % of people think it . 33% of people save money in home and 50% of them
save money in bank

Huge number of people i.e. 67.67% people expect the rate of rate of return as between
5-10%but nearby 56.67 % of people either get less than5% or even don’t get any return
on their savings , Nearby 73 % of people are not satisfied with the rate of return they
get on their saving

If our institution provide rate of return near 6-8%, lots of people from our population
are going to be attracted towards us and maintaining the saving with us .


primar data collected from populatin with the help of sample