Microfinance at your fingertips 

Who benefits from microfinance? Microfinance generally concerns the poor inhabitants of developing countries. More generally, microfinance refers to a vision of the world where “the maximum number of poor or assimilated households can have permanent access to a range of high-quality financial services tailored to their needs, including not only credit but also savings, insurance, money transfers’ and education.

Microfinance provides access to financial autonomy. Microcredit provides access to banking for the poorest and enables banking inclusion. On the other hand, microfinance brings choices through decision-making power. It brings a certain independence and autonomy which allow emancipation and therefore a breakthrough for women.

Can I invest in LMDF? Am I the right type of investor?

Yes, you can! LMDF was specially designed to allow every type of investor to do good with her/his savings. We have all kind of investors like wealthy ones but also investors that don’t have 150k to invest. And it is not even complicated! There are two ways to start investing: through your bank, or directly with us.

And why should I invest? To give a purpose to your savings! You may have money sitting on your bank account or are putting money aside for your children or nephews? Why not put that money to use while you don’t need it? You can buy it back on a quarterly basis as soon as you need it.

Here is how you can invest

What about returns? Isn’t it too risky?

We want to be an attractive investment proposition and target at least 2% annual return for Class C investors. In practice, this means that we want to deliver very stable returns with a low volatility.

And is it risky? As a shareholder in Class C shares you are protected against losses arising from a credit or counterparty risks of microfinance institutions through a first loss tranche of capital subscribed by the Luxembourg Government and our investment adviser, ADA. The Prospectus prescribes that this protection should be at least 20% of the Class C capital, i.e. we can lose more than 1/5 of our diversified portfolio before you start losing money.

More about how we manage risks

Why they trust us

“I have been fortunate enough to be able to gather some savings, and investing them in sustainable solutions, such as LMDF, seemed obvious to me. There are many convincing arguments to do so – but two particularly appealed to me.

First, I want to know the destiny of my savings and second investing in LMDF allows microcredits to be given to the most deprived so that they can build a suitable income and support their families. Personally, I have to find investments which provide benefits and have a double purpose.”

Doris de Paoli

“I wanted to contribute in a social manner, but not just by “giving away” my money, I wanted to empower people, privilege education, encourage entrepreneurship, allow people who have no access to regular banking services to be able to get a fresh start or make their dreams come alive. If this could be done in a sustainable way, with a little yield and a certain security for the investor, this would be perfect.

This is where LMDF came in, offering the possibility of supporting the poor financially, giving a regular decent yield, partly guaranteed by the Luxemburgish State and the priceless feeling…Philanthropy.”

Mark Uldall

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