Micro Investing

The term was coined by Dr. Musa, Founder Member of the Bangalore Investors Club, Fraser Town, Bangalore in India.

We take such things as PAN Cards, Bank Accounts, Demat and Trading Accounts, more or less, for granted.

What about the woman who comes in to do your house work - sweeping, swabbing and doing your dirty dishes? What about the people employed by the City Corporation or Municipality to sweep and clean our roads and surroundings? What about the thousands of people who live below the so-called "Poverty Line?"

Do they have recourse to investing opportunities other than the local money lender or un-monitored "chit funds?" Do folks like them have a way to invest in post office savings instruments, mutual funds or even equities?

Dr. Musa and a small group set up a meeting for a group of 10 such women and led them through a Q&A session, and came up with some insights. 8 out of the 10 women did NOT know that they could invest small amounts in the Post Office, and benefit from the Income and Growth Schemes.

All these women have invested, and have lost, a relatively large sum of money in chit funds schemes and local money lenders. They have no clue that they can invest small amounts in governed and monitored schemes, where their funds are protected. Only 2 of the 10 have opened a bank account. None of them have PAN Cards - an essential for opening bank accounts.

The small group is committed to help these and other such folks to get an entry into "main-stream" finance and help them "micro-invest" in structured schemes. We are in the process of helping them with getting proof of residence address, PAN Cards, and opening bank accounts in banks that look favourably at "financial inclusion" as an opportunity at the Bottom Of the Pyramid (BoP, as defined by C K Prahalad).

Readers in India who wish to contribute in any way to this initiative may please head over to the Bangalore Investors Club, subscribe to the newsletter and send a mail to Dr. Musa, expressing your interest in contributing.

Thank you.