Lots of people are talking about the concept of impact investing now, and you’re probably wanting to hear more. You might not really know much about impact investing and what it can do for you. If you keep reading the information below, then you’ll be able to learn everything you need to know. Once you understand the basics of impact investing, you’ll be able to get started if you find yourself interested. 

What Is Impact Investing?

Impact investing is something that people who care about social and environmental issues are passionate about. This is a type of investment that involves investing money in companies that are developing solutions to social problems. Investors identify businesses that are being socially responsible and have a vision for the future. They then choose to invest money in those businesses because they believe in the good things that they are trying to accomplish. 

Typically, investors in traditional investments only care about profits and how they’re going to grow their wealth over time. Impact investing is different because they are truly invested in the things that the companies want to do. You’ll often see impact investing funds reporting on the impact that they are having on the world. The process is very transparent because it’s a different approach to the investment philosophy. 

Do Impact Investments Make Less Money?

If you’re worried about whether impact investments will make less money than standard investments, then you shouldn’t be. The data has shown that socially responsible companies have been turning good profits and doing quite well. You could very well profit from impact investing and might even do better than you would otherwise. As with any type of investment, there will always be an element of risk, though.

How to Start with Impact Investing

There are a couple of different approaches that you can take when getting into impact investing. You could pick companies yourself and invest in ones that you believe in. You can also search impact investing databases to easily find lists of companies that fall under the right categories. Either way, it’s good for you to know that impact investing is very hot right now.