In a chit fund, a group of people come together to save and invest their money collectively. Each member contributes a fixed amount of money to the chit fund every month for a predetermined period. A foreman, who can be an individual or a company, brings these subscribers together and manages the chit fund. The foreman’s responsibilities include collecting money from subscribers, overseeing auctions, and maintaining records. The foreman receives a fixed monthly compensation, usually 5% of the total chit fund amount, for their services. The foreman does not have any special privileges and is considered a regular subscriber of the chit fund. The total amount collected is then auctioned off every month to one of the members who placed the highest bid.