Despite the fact that a large number of people in the country have a high amount of wealth, which they are using to support their families and close friends, there exist communities that are underserved in various parts of the country. These individuals don’t have the financial capacity to pay for most of their financial needs such as clothes, shelter, medication, and even education. For those people who want to help underserved communities, here are some important tips to consider when planning to invest in these communities.
Invest in Community Development Banks
Community development banks are special types of a banks, which provides loans and financial services to the members of the community, especially the low-income individuals. An individual can consider investing in these types of banks because they help underserved members of society. These banks are different from the traditional mainstream banks as they have been authorized and certified to help needy communities in society.
Invest in Agency Bonds
This is another method of investing in an underserved community. These financial instruments, which are debts in nature are issued by the government and other government agencies with the sole aim of helping underserved communities. The funds collected through this types of investment are used in building houses and other types of infrastructure that such members of the community could not have afforded.
Buying Stocks in a Publicly Trading Companies
A large number of companies trading in the stock market engage in services that help underserved communities. This is an indirect strategy but it will play a vital role in supporting underserved communities. It also comes with significant benefits such as tax benefits thereby increasing their income as compared to individuals investing in other types of investments available.
Social Responsible Mutual Funds
Another type of investment that individual can consider if they want to invest in underserved communities is investing in socially responsible mutual investments. These types of funds are invested in the community with the sole aim of performing multiple duties. One of the main roles of these funds is building infrastructures such as medical facilities, roads, and educational institutions. Most of these facilities are lacking in the underserved communities. A person with surplus resources can consider building rental apartments that people from underserved communities can easily afford.