Are impact funds a good investment?

More than 88% of impact investors reported that their investments met or exceeded their expectations. A 2021 study showed that the median impact fund realized a 6.4% return, compared to 7.4% from non-impact funds. The term impact investing was first coined in 2007, but the practice was developed years earlier.

What is impact investing?

Investors who use impact investing as a strategy consider a company's commitment to corporate social responsibility (CSR) or the sense of duty to positively serve society as a whole before they become involved with that company. The type of impact this creates varies based on the industry and the specific company within that industry.

What are the different types of Impact Investing?

Socially responsible (SRI) and environmental, social, and governance (ESG) investing are two approaches to impact investing. More than 88% of impact investors reported that their investments met or exceeded their expectations. A 2021 study showed that the median impact fund realized a 6.4% return, compared to 7.4% from non-impact funds.