Special purpose funds Some chit funds are conducted as a savings scheme for a specific purpose. An example is the Deepavali sweets fund, which has a specific end date about a week before Deepavali. Neighbourhood ladies pool their savings each week. They use this fund to buy and prepare sweets in bulk just before the Deepavali festival, and they distribute sweets to all members. Preparation of Deepavali sweets may be a time consuming and costly activity for individuals. Such a chit reduces costs, and relieves members from extra work in a busy festival season. Nowadays, such special purpose chits are conducted by jewellery shops, kitchenware shops, etc. to promote their products. See also Rotating Savings and Credit Association Saradha Group financial scandal Peerless Group Kitty Party References External links . Financial services in India Informal finance Informal economy in Asia Microfinance Collaborative finance Contexts_for_auctions