Investmen Account is used as an investments grant to create opportunities and resources for underprivileged people. These people are underserved by conventional financial institutions. 

Investmen Account assists individuals in meeting several community needs and supporting local development. Investmen Account might not be the best way to grow your wealth, but it helps you diversify your portfolio. 

This account aim to boost economic development in low- to moderate-income neighborhoods. Generally, community development to promote affordable housing, job opportunities, and a healthy community. 

Am Investmen Account is a viable choice. Especially, if you want an alternative to charity fundraising . You can open your account so that you organization can help underprivileged communities for development.

However, they prefer to provide funds to low to moderate-income clients only. They actually provide 60% of community development loan funds to only low-income communities.

Community investment bonds are a social financing service. They help not-for-profit organizations fund initiatives that have a positive social impact. 

Participating in community investment bonds is another way to be a part of the investor community. These bonds are interest-bearing bonds designed for small-scale investors. 

Community Investment Bonds feature a fixed rate of return for a set period. As a result, you get a decent return on your investment while also supporting a good cause.

Agency bonds are another ideal way to invest in the community. The federal government department or government-sponsored enterprise provides security for these bonds. 

Government entities that issue bonds help people get affordable housing. Some agency bonds are even exempt from local and state taxes. Moreover, these bonds have higher interest rates than U.S. Treasury bonds.

Like any other bonds, they have some interest rate risks. However, these risks are relatively less than conventional community investment methods.

Some agency bonds are available with fixed coupon rates, while others may have floating rates. Note that the interest rates for bonds with floating rates are periodically adjusted.

If you want to diversify your Investmen Account, you can always choose pooled investment portfolios. These are funds in a portfolio from several individual investors. A pooled investment portfolio collects capital from individual investors and invests as one huge portfolio.

Some common examples of professionally managed pooled funds are exchange-traded funds, unit investment trusts, and hedge funds.

Investors benefit from economies of scale in pooled investment portfolios. After all, it allows them to lower trading costs per dollar invested. Moreover, investors can take advantage of opportunities available to big institutional investors.

You can look for a pooled investment portfolio that serves low-income areas within a community.

Real estate investment is the best option if you want to earn passive income indefinitely. It has the potential for long-term passive income. At the same time, you can provide affordable housing to the needy in your area. 

Investing in real estate helps you improve the neighborhood and the lives of people living in it. However, real estate community investment will be ethical only when the rent is fair – consider the ongoing housing crisis in the U.S.

To invest in the community, you can buy municipal bonds as well. A municipal bond, also known as a muni bond (or just muni), is issued by the municipality or local government. 

In the United States, bondholders often get a decent interest rate. Unfortunately, these bonds are not always exempt from state and federal income taxation. 

You can buy municipal bonds that serve underserved people. These people do not have access to affordable housing, reputable or safe educational facilities, medical care, or may have bad roads in their neighborhoods. 

When you invest in the municipal bond, you support the construction of highways, schools, bridges, and more.

Generally, there are two types of municipal bonds. They are divided based on the amount of interest paid, and the debt returned. 

• General Obligation BondA government entity issues this bond. Some general obligation bonds are paid with dedicated property taxes, while others with general funds.
• Revenue BondA revenue bond is another municipal bond type, backed by revenue generated by a specific project, such as an expressway, or local stadium. The issuer guarantees the lending amount and interest payments for the revenue bond.

By investing in municipal bonds, you can fund your local government for public works. They can use your funds for making parks, bridges, roads, and libraries. You get the investment amount plus interests on municipal bonds when they complete the maturity date. 

The good thing about municipal bonds is that they are income-tax-free. Also, they are more secure than stocks.

Apart from municipality bonds, you can buy stocks of public traded companies. These firms invest in underserved communities. This method is not a direct community investment. Nevertheless, it provides investors with options to look for higher-retu

Socially responsible mutual funds can be another good option for community investment. They hold securities in companies that stick to social, moral, and environmental beliefs.

Look for socially responsible mutual funds that allocate up to at least 10% of funds to community investing. By making contributions to the mutual fund community, you can contribute to supporting disadvantaged communities.

Note that federal financial agencies do not insure these mutual funds