Ans: You should keep the following things in mind while investing in chit funds: A person must be financially stable to make contributions towards a chit fund cycle.  You need to find out whether there’re any court cases or complaints against a chit fund firm.  Next, you must select a chit fund company that charges a low commission. Check a foreman’s commission before taking the plunge.  Go through the incorporation details of a firm. The Registrar of Chit Fund must issue a certificate and a registration number to a chit fund company. You should also ensure that the promoters of that entity are financially strong.