The global investing landscape is
experiencing significant changes. The admission that some of the world's
biggest problems need market-based solutions changes the way people invest.
Similarly, the proliferation of impact investing services has made it easier for people to pursue
market-rate returns looking to play a pivotal role in solving an array of
environmental, social, and governance issues.
The structural wealth transfer
from baby boomers to millennials already has a significant impact on the
investment world. Unlike in the past, where investors focused purely on
returns, the need to invest for a cause has become a key tenant in investment
decisions.
Next Generation Impact Investors
Millennials are the catalysts
behind ESG investing, a new trend taking the investment world by storm. While
previous generations aimed their investments at generating bumper returns,
next-generation investors are looking to impact the environment and the human race
with their investments positively.
Likewise, impact investment funds
are increasingly cropping up, looking to profit from acknowledging that future
finance will be shaped by next-generation investors focused on positive
impacts.
Impact investment services have
made it possible for next-generation investors to use their investments as a
tool for realizing the change they would like to see in the world. Such
services offered by ESG consulting firms such as The Altruist League also align
investors' profit with their social purpose.
” Our impact investing research
and consulting services are helping investors effectively deploy capital and
align impact investing returns with impact objectives,” said Ekaterina
Chernova, The Altruist League’s Managing partner.
With millennials expected to take
over from baby boomers in a few years, impact investing is sure to take over
the mainstream investment world. Impact investing has already overtaken angel
investing in search volume, affirming its growing popularity and acceptance.
The trend around Impact Investing
As the next-generation form of
investing, several trends are already manifesting themselves around impact
investing. While the focus has been on millennials and their impact on
sustainable investing, gender focus is also becoming a central theme.
The need to have more women in
the investment world is already taking shape around impact investing and funds.
Likewise, there should be a broader view of gender beyond women and girls and
more into intersectional identities.
Similarly, push for the environment is also taking shape as impact investing is all about positively
impacting. A good number of impact investing services are collating data and
investment insights for investors focused on impacting the environment positively
in addition to pursuing market returns.
“Climate focus is no longer a
niche in the impact investing sector. Expect a wider and growing range of
strategies focused on climate and environmental investing,” said, Milos Maricic,
The Altruist League’s president.
Likewise, more announcements and
partnerships between corporations, local communities, and impact investing
funds are expected, all geared towards positively impacting the environment.
As technology brings people
closer, so should it find its way into the realms of impact investing? While
digitization promises to provide impact investors with more chances to support
opportunities, it should also help them make informed decisions.
Most people have shrugged impact
investments on sighting the lack of sufficient data and material needed to
evaluate and gauge potential impact investment returns and impact. However,
emerging technologies such as Artificial intelligence that enhance data
collection and analysis promises to change everything.
The use of advanced technology to
gain a competitive edge in selecting prospective investments that generate
market-rate returns and have a significant impact should be the catalysts in
drawing in more institutional investors. Likewise, it should be the catalyst in
enhancing impact investing growth conversely takes it mainstream.
Traditional financial
institutions are under immense pressure from clients and beneficiaries to make
impact investing more accessible. Likewise, expect a shift of more meaningful
engagement in impact investing from institutional investors going forward.
Impact investing has all but
demystified the long-held notion that philanthropic donations should address
ESG issues. Impact investing services have proved beyond doubt that it is
possible to invest and positively impact the environment and human race and
still be able to generate market-rate returns.
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