Chit fund and Us, do we promote or demote.

For the money making purposes the max returns order over the long term is this :-

Derivatives > Stock market >Real Estate > Mutual Funds > ULIPs> New Pension scheme, SSC > FDs > gold , Govt bonds

In terms of risks order is reverse with slight changes :-

Govt bonds (safest) > Pension scheme, SSC > FDs> Gold > ULIPs > Mutual Funds > Real Estate > Stocks >Derivatives (riskiest)

Chit funds or instant money ponzi schemes invest in unsecure pvt FDs or high risk stocks with no guarantee. Fully agree with @TF, @Rio and others - promoting such schemes is just not worth it.It mayeven be risky in case of a crackdown.

For short term returns best is bank FD while for medium term reurns MutualFunds, Pension Schemes and BlueChip stocks (requires some basic market knowledge) are the best avenues.

Rightly said Dr.  Pushkar

Rightly said Dr.  Pushkar

Some months back I was travelling to kolkata by train and met a group of agents of some kolkata company accumulating money by way of shares. There leader tried to convince me, and I tried to bhadkaao his agents, but none was ready to listen to me. The locsl poor youth become their prey, and then they dupe themselves and all their kinz and whole village. 

I second TF because while collecting money, as in SIP and ULIP, insurance companies and investment companies show an average return of 40% per annum; but when time comes for liquidation, they will show you the conditions apply clause. End result: you get a return of 4% or 5% per annum for 3-4 years, which is quite less than FD's ROI.

Conclusion: Unless and until you understand the complete ramifications of investing in SIP or ULIP, better stick of FDs and traditional recurring savings accounts.

@Madhu 

Well analysed, pankti. 

I am very cynical of the whole corporate world. But usually alternate to corporate world is government. And government is even worse. Corporate structure is at least organized, effecient and somewhat honest in their greed. But governments are chaotic, ineffecient and masters of double speak. So for common citizens it is between devil and deep sea.

Among corporates I have never really seen value in most of the high end financial sector - all the derivatives, structuring, quant desk whatever. Apparently they are supposed to manage the flow of wealth in the complex world and ensure money is spent in areas of maximum benefit to mankind. Theoretically it makes sense. But in practice the underlying assumptions on which the financial structure  is build are pereverse and makes them do the opposite - the America real estate burst being prominent example.

 At an individual level, yes - the exact workings of these instruments are beyond the comprehension of common man. So common man investing in them is just like blind gambling. Many part time agents of these companies are ill qualified people who promise heaven and earth to just get business. In my opinion, best to avoid and go for bank deposits and if more risk apetite shares of sound companies that have delivered good results over the years.

As far as advertising, yes. I stopped all contests for this reason. I have decided I will not allow any kind of advertising on my blog, except maybe really genuine social causes.

Well Madhu - To be honest, facebook has made communities like these irrelavent. Bloggers can connect through Facebook communities and share their blog posts with a wider community. People can link up and organize meets in their cities themselves. As far as blogging ideas go, there are numerous sites that give prompts. So the only attraction remaining is freebies - which is why the contests and meets are so important.

Other role a business around blogs can play is filtering out the best blogs from the humongous number out there. Possibly the Blogger awards are a step in that direction.

True madhu,  but learned ignore chit fund but get thrashed ny multinational brands. Poor have no respite. 

True madhu,  but learned ignore chit fund but get thrashed ny multinational brands. Poor have no respite. 

Hum lalchee honge pad shaitan nahin [heroic smile]... tell me your story bro...

yes... even reputed companies like Reliance made me realise what a fool I was when I received 76K after putting 25k in their pouch every year for 3 consecutive years... I trust none now other than faithful friend Gold... anyway I'm in no mood to listen to some monotonous videos and then sing for a rich man without knowing his history or geography... I'm not brave enough for the act...

Thanks Anunoy,  [happy to hear Gold]