Impact Investing

If you are reading this post, there is a good chance you are already familiar with ESG investing. It goes by a few names. Socially responsible investing, green investing etc. The general idea with ESG is that you can invest your money in a way that avoids industries and practices you don’t agree with.

Impact investing is similar, in that it generally avoids the same types of industries as ESG investing, but it has a key difference. That difference is all about targeting. What that means, is that instead of just trying to avoid problems, impact investing actively seeks to identify companies and industries that an investor wants to target their investment toward. The whole point being to use money and investment capital to make a difference and Crete positive social results.

Case in point, a very popular impact investing trend in 2020 and likely into the future, is to invest money into companies and funds that are in the renewable energy space. Some other areas where impact investing is popular are healthcare, education, and agriculture. Again the common thread here is that the investor is seeking to make a positive impact in the world by providing investment capital to specific industries for the betterment of society.

Impact investing is still young, and is most often available to institutional investors. That doesn’t mean it is not possible. Balanced Capital can direct you to companies and funds that meet this goal.