Fraternities are a fixed duration product, like 20 or 40 months. They begin as a savings instrument and keep accumulating in value as you pay instalments month on month. Whenever you need to make a large expense, you may 'prize' the fraternity, giving you lumpsum money. After the 'prizing', you continue to pay instalments for the remaining duration.
Your need / expense may arise in the beginning or at the end. The fraternity is flexible and will give you the funds when you need them. Depending on your need, it behaves as a savings instrument or a borrowing instrument or a mix of both.
In a nutshell, you commit to paying instalments for a fixed duration in exchange for the certainty of lumpsum funds at the time of your need. The following example will make things easy to understand
Planning with Fraternities.
Ensure that you are aware of your financial outlook in the near future
Estimate how much you can spare from your income / business every month
Enroll in Fraternities that fulfil your needs & monthly saving capacity
Whenever need for funds arises, ask our executive to explain all funding options
Prize the Fraternity most suitable and get lumpsum funds to fulfil the need
Every few months, reassess your Subscriptions, be planned for every need
Rohit is a young entrepreneur, established in his business and doing well for himself. He has a family with young children and retired parents. He is spending comfortably and has money to save. Except, Rohit really doesn't know where to put his money. People have advised him to invest in property, gold, equities, mutual funds, bank deposits and bitcoins.
Rohit makes a list of things he wishes to achieve. He knows he needs to change his car in an year or so. He needs to set aside money for his children's education, most likely for an international university. Rohit's house may require repair. Other than that, he has long term goals like retirement and his children's weddings.
Rohit begins 4 Fraternities, one each for his car, education, repair expense and for emergencies. Education and Repairs are further down the road, so he chooses long durations such as 35 months and 40 months. He chooses a 24 month Fraternity for his car. Beyond this, he invests in longer term assets for both growth and return.
Rohit had applied for Industrial Land, which he has been allotted. He ends up using his emergency Fraternity the earliest. Soon after, he prizes the car Fraternity after about a year and buys himself a luxury car. He was prepared with boot money when it came to Education and House Repair. Rohit was able to conquer his financial challenges without breaking a sweat.
Rohit ended up paying extra in the Fraternity he used for his Industrial Land because he prized it early in the Fraternity's term. For his car however, his net instalments matched his 'prize amount' neither giving him a profit, nor causing him a loss. For the other 2 Fraternities, he earned a return for staying invested till the end.
Rohit also invested a little in volatile assets like Bitcoin and Equities. He monitors to see the returns once in a while. His short term goals are yet again being planned through fraternities, while his other investments are being accumulated for either buying a vacation home or for his retirement.