Impact Investing: 5 of the Best Ways to Start

The priority shift has led investors to evaluate their portfolios. The desire to outperform the market while making a positive change is enticing and possible. Impact investing makes a difference.

So while the future is unknown and investing risky, change is coming. Impact investing is a trend worth knowing. 

What is Impact Investing?

Impact investing was first coined in 2007. As an investment strategy that focuses on corporate social responsibility, it’s considered an extension of philanthropy.

Types of Impact Investments

Investors will find impact investments across asset classes and sectors, including healthcare, education, agriculture, technology, energy, microfinance, housing, etc.

How Are Impact Investments Measured?

ESG (Environmental-Social-Governance) scores are calculated to measure how a company performs. Impact investors may focus on the part of the score as they may be interested in a specific impact the company makes in a particular area.

Are Risks Lower With Impact Investments?

Investing is risky. However, investing in solid companies minimizes risk with and without responsible business practices.

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