Nidhi Company and Mutual Funds

Nidhi Company and Mutual Funds

Mutual Funds and Nidhi are two different companies. They differ in their object, the nature of the business and other things that follow. We will list a few difference to clear their difference.

Mutual Fund Society or Nidhi or Mutual Benefit Funds are one and the same. In fact, they have many other names also.

Differences – Nidhi Company and Mutual Funds

Basis Nidhi Mutual Fund
Object  

Develop a habit of savings and self-reliance among members

 

To increase the wealth of depositors.
Nature of business  

 

 

Lending and borrowing among members. No involvement in the business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any Body corporate.

Acceptance of deposits and making investments.
Use of deposits Lending to members.  

 

 

Making investments, carry on the business of chit fund, hire purchase finance, leasing finance, insurance or acquisition of securities issued by any Body corporate, etc

Get complete information on Nidhi Company Registration – Documents, Procedure, & Requirements.

Related Article- What are Nidhi Companies? What is NBFC?

How do Nidhi Company and Mutual Funds differ ?
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