Investing with impact: returns and social contribution

In an increasingly complex world, we are increasingly looking for ways to increase our impact on society. This also applies to our investments. More and more people want to invest with a dual purpose: return and impact.

At buro philip van den hurk, we understand this desire. We see that more and more of our clients are looking for investment opportunities that not only provide financial gain, but also make a positive contribution to society.

In this blog post, we discuss the opportunities presented by impact investing. We look at different forms of investment and discuss the risks and returns associated with them. We also provide tips on how to get started investing with impact.

What is investing with impact?

Investing with impact is a form of investing where you invest money in companies or projects that make a positive contribution to society. These can include companies that focus on renewable energy, social development or the circular economy.

Ways to invest with impact

There are several ways to invest with impact. For example, you can invest in:

  • Impact funds: These are funds specifically aimed at achieving impact. Impact funds invest in a wide range of companies and projects that meet certain impact criteria.
  • Sustainable investment funds: These funds select their investments based on environmental, social and governance (ESG) criteria. This means that they invest in companies that score well on environmental, social and governance issues.
  • Crowdfunding: Crowdfunding platforms allow you to invest directly in companies or projects you care about.

Return and impact

Investing with impact is not only good for society, it can also provide attractive returns. Research shows that impact funds perform at least as well as traditional mutual funds over the long term.

Of course, there are also risks associated with impact investing. For example, it is important to note that impact funds often have a higher risk profile than traditional mutual funds. This is because they often invest in companies that are in the early stages of development.

Tips to get started investing with impact

Want to start investing with impact? Here are a few tips:

  • Define your goals: What do you want to achieve with your investments? Do you want to make a positive contribution to a specific issue, such as climate change or poverty reduction?
  • Do your research: There are many different impact funds and investment options. Delve into the different options and choose the funds that fit your goals and risk profile.
  • Spread your risk: Don't invest all your money in one fund or project. Spread your risk by investing in different funds and investment types.
  • Patience is a virtue: Investing with impact is a long-term investment. Don't expect quick returns.

Investing with impact is an interesting way to put your money to work while making a positive contribution to society. There are several forms of investment available, each with their own risks and returns. Do your research, determine your goals and choose the form of investment that fits your risk profile.