I’ve been following a trend know as microfinance or microloans for a few years now, and I’m really excited to see that some online marketplaces for it are getting established.
The concept is simple- instead of investing huge amounts in huge multinationals, invest smaller amounts in microloans the 3rd world, where traditional means of finance are typically unavailable. You’ll be getting fairly low returns, from 1-3%, but data to date suggests that microloans have extraordinarily low default rates. Certainly no once can argue against a little portfolio diversification these days, and I’m hoping no one will argue against the mission. Take a look at: