Impact investing is gaining more attention among investors today, especially with the Millennials and Generation Z.

The growing popularity of impact investing is not anecdotal, as a rising number of asset owners and managers have turned to impact investing in pursuit of meaningful financial and social gains.

In a nutshell, impact investing focuses on generating positive returns for investors and society in general.

What is Impact Investing?

Impact investing is a strategy where you put your money to work not only to acquire solid returns, but also for positive environmental and social reasons. With impact investing, you can be more proactive with your investment money and help facilitate real change around the world.

Investing in organizations supporting the United Nation’s (UN) Sustainable Development Goals (SDGs) is one popular form of impact investing.

Keep in mind that impact investing is not charity, as impact investors are always expecting to make excellent profits and outperform the market. They just have goals that involve more than achieving max income on an investment.

What Assets are Considered Impact Investments?

Impact investments consist of various assets and investment strategies. They can be any investment that is both trying to turn a solid profit and create a positive impact on the environment and society.

For example, you can invest in the stock of a solar company because of its positive contribution to the environment, or you can buy mortgage-supported securities that aim to back affordable housing for low-income communities.

Those investments aim to make the world a better place, but they also have the potential to generate your expected returns.

Read more @Forex Live