May 22, 2015 Fact of the Day: Can you name a Micro Finance Organization?
DID YOU KNOW THAT MOST INVESTORS ARE NOT AWARE OF MICROFINANCE ORGANIZATIONS?
Recent research from Spectrem Group indicates that about a third of wealthy investors claim to be familiar with the concept of investing in microfinance, very few are aware of organizations that allow investors to place assets into these types of investments.
Microfinance is an investment approach that allows investors to provide financing for entrepreneurs in developing areas, particularly poorer nations. The funds are used to develop businesses and the investor receives a return similar to that of a loan and theoretically receives the principal back at the end of the investment term. Many organizations offer these types of investments. The only organization, however, that had any brand name recognition with investors was Kiva. Eighteen percent of investors were familiar with Kiva with that percentage increasing to 37 percent for investors under the age of 35.
If you are interested in microfinance, talk to an advisor about available options. Don’t have an advisor? Check out our Best Advisor……