The correct answer is option 1 - 1 only.
Explanation: A chit fund is a type of savings scheme in India where a group of individuals come together and contribute a fixed amount of money regularly. Each member of the group then takes turns receiving a lump sum amount which is known as a chit. This continues until all the members have received their share.
Option 1 is correct because a chit fund is indeed a type of savings scheme. It allows individuals to save and accumulate a certain amount of money over a period of time. The amount received by each member can be used for various purposes such as education, starting a business, or purchasing assets.
Option 2 is incorrect because there are Acts in India that regulate the activities relating to chit funds. The Chit Funds Act, 1982 is one such legislation that governs the establishment, operation, and regulation of chit funds in India. This Act provides guidelines and safeguards to protect the interests of the investors participating in chit funds.
In conclusion, option 1 is correct as a chit fund is a type of savings scheme, while option 2 is incorrect as there are Acts regulating the activities relating to chit funds in India.