Make your money go further for just 25p per day


Impact investing: playing the long game

Money in four glass jars and a growing plant

Impact investing, or picking companies which prioritise social and environmental improvements alongside financial gains, is growing in popularity. But before prospective investors commit their money to an impact strategy, they should ponder two key questions: can the strategy beat wider market returns and will it appeal in a financial downturn? We’ve attempted to answer those questions and provided our three favourite funds in the impact space.

Philanthropists donate money to improve the welfare of others. Investors provide companies with money in the hope that they will share in their growth. Impact investors sit somewhere in between. Sceptics might say that most impact investors are closer to the investment end of the spectrum than the philanthropy (after all, their ultimate intention is to make money), but it’s also hard to deny that their intentions are good: the purpose of impact investing is “to create positive impact beyond financial return.” True impact investors consider social and environmental growth to be just as important as financial performance.

In the past, mainstream institutions or private investors have feared this speculative terrain, leaving adventurous venture capitalists or charities to provide the capital necessary for innovation in environmentally or socially pioneering ideas. But more recently, environmental, social and governance (ESG) investing has gained popularity and impact investing has been swept up with the demand.

Impact investing is forecast to grow to more than $300bn…

Continue reading this article…

With a subscription
Gain access to all our excellent content for just £90 per year, that’s just 25p per day for financial freedom.
  • In depth coverage of many of the world’s great companies
  • Breaking news on potential upcoming disasters
  • Unique insights from our top research team
With credits
Get access to our premium content for as little as £3.20 per article.
  • Only pay for what you want to read
  • Easy credit payment system
  • Access our excellent Premium content

Previous article Next article

Have your say

Log in or register to view or add comments.

For access to the top news and insights from the investment world


Become a Champion Investor for as little as £3.20 per report or get a year's worth of money-making analysis for just £90.