Diversified Community Investment Funds

= " a type of community-scale fund that invests primarily in real estate, but also invests in local businesses and can do so with investment capital raised publicly from within the fund’s own community". [1]

Description

Melissa Davis:

"A DCIF can distribute profits to its community investors, creating wealth-building opportunities while contributing to a more vigorous local economy. This CLP proposes to introduce people to crowd-capitalization, build infrastructure for large community conversations, and use knowledge gained to establish a local Diversified Community Investment Fund.

...

Through the 2013 Michigan Invests Locally Exemption (MILE) Act, a Michigan resident can now invest up to $10,000 in a crowd-financed project. Professional investors prioritize getting a 12 to 22% return on their investment. Other investors have that priority as well, but if the opportunity presents itself to improve the economic condition of their community, perhaps is a business they’d like to see in their neighborhood and it looks like a good investment, they may be willing to allocate some percentage of their portfolio to investments that may not offer an immediate or particularly hearty return. Other residents who are unfamiliar with the investing process may have some disposable cash and a not-asaggressive profit priority and choose to invest because they want to see improvement and growth in their area’s main street economy.

This project seeks to put together a group that differs from yet shares attributes with local investing clubs and investing networks. A local investing club pools their money and makes collective investing decisions; whereas an investing network doesn't pool their money but still learns about investments together. This project is building the needed infrastructure for a group discussion that will have a largetent general theme of improving our local economy. "

([2])