How do Blossom Investments work?

How do I earn a profit with Blossom? What is the method of investing with Blossom? What happens to my money when I invest with Blossom? How does Blossom's SmartSukuk work?

We offer halal, ethical investments into micro-businesses that make a positive social impact. When you invest with us, we combine your funds with the funds of other similar investors and utilize the funds across a wide range of various micro-businesses

In short, we connect your investment with lots of halal small businesses. Blossom does not invest in any funds, ETFs, mutual funds, or other sukuk at this time.

So for example, if you invest $100 your investment will be split up across 10 business with $10 invest in each in categories like farming, grocery stores, automative repair, micro-industry, etcetera.Your funds are used to help these businesses purchase items they need for their business (such as fertilizer for a farm, packaged goods for sale at the grocery store, tools for automative repair, etc.) Spreading out your investment this way - called diversification - lowers your risk while maximizing the number of people your investment helps.

The microfinance institutions that Blossom partners with oversee the day to day operations of the portfolio and ensure your investment is productive. Funds are distributed to local small businesses through various halal means such as: mudaraba, murabaha, musharaka, or ijarah which do not utilize compounding interest (usury/ riba). We maintain records of every small business financed in the portfolio along with what type of goods or equipment was financed

Each month these investments generate profits, which you earn and can withdraw or reinvest. The amount of money your investment earns each month varies based on the profit generated by the group of businesses. The funds you invest have a specific term - 3 months, 6 months, 1 year, etc. You can withdraw profits any time, but the original investment is subject to the time period you select when you invest. We target between 10-15% annualized return. Currently, we estimate approximately an 11% return on a USD basis. Historically, returns have exceeded 15% on an Indonesian Rupiah basis.

Blossom uses the ethereum blockchain to issue sukuk ownership certificates and to distribute payments on a pro-rata basis to sukuk holders. This approach removes many manual processes and expensive financial intermediaries.

There are no management or maintenance fees. We take between 20-35% of profits generated by investments (depending on the tenure).