What is Impact Investing and Why You Should Be Doing It

Henley Donaldson
4 min readJul 27, 2022

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Image source: Adobe Stock

Impact investing is a growing segment of the investment world that seeks to generate measurable social and environmental impact alongside a financial return. Investors can make an impact investment by focusing on mission-driven companies or causes, making direct investments in those organizations, or investing in companies that are focused on positive impact.

READ: Echo: An new kind of exchange. Invest in impact with 1000E for free.

Impact investing may involve risk, but it can also offer very high rewards. Investing with a positive social or environmental impact might feel like charity, but it’s not exactly — it’s impact investing. Although this type of investment has been around for years, it has really taken off recently as Millennials show a growing interest in these types of investments. If you’re intrigued by the idea of impact investing but aren’t sure where to start, this article will give you some great information about what impact investing is and why you should consider doing it.

What Is Impact Investing?

Impact investing is the strategic investment of an individual’s money with the intention of creating social or environmental good in addition to a financial return. Impact investments are made in companies or projects that are deemed to have a positive social impact or make a positive environmental impact. Impact investing can also be referred to as socially responsible investing (SRI).

Investments that have a positive impact on society and the environment can provide you with a financial return on your investment much like any other investment. You may have some concerns about loss, but impact investing can produce a significant return when compared to other types of investments.

Why You Should Be Doing It

Impact investing can be a great addition to any well-diversified investment portfolio. This type of investment can be more risky than typical investments, but it can also offer a higher return. As a socially responsible investor, you can choose to invest in mission-driven companies to help them grow and scale. You can also choose to direct your impact investment to causes that are important to you.

If you’re looking for a way to build your net worth and make a positive social impact at the same time, you should consider impact investing. Impact investing provides a great way to give back through your investments and help organizations and causes that you care about.

Types of Impact Investments

There are many different types of impact investments, including venture capital, private equity, debt instruments, and real estate. In each of these areas, there are different types of investments (e.g., equity or debt) that may have more or less impact. You can choose an investment type based on your risk tolerance, financial situation, and the type of impact that you’re interested in making.

There are many different types of impact investments, including venture capital, private equity, debt instruments, and real estate. In each of these areas, there are different types of investments (e.g., equity or debt) that may have more or less impact. You can choose an investment type based on your risk tolerance, financial situation, and the type of impact that you’re interested in making.

How to Get Started With Impact Investing

Impact investing can be a positive way to invest your money, but it isn’t for everyone. If you’re interested in impact investing, it’s important to do some research first to make sure that it’s the right fit for you. Before you make any decisions about where to invest your money, you’ll want to consider your financial situation, risk tolerance, and investment goals. You’ll also want to choose the right impact investment for your goals. There are a number of ways to get started with impact investing, but I would recommend starting out with Echo Exchange. If you are a fan of my content, you probably already read my article on Echo.

Echo is a great and free way to get started investing in impact. It offers great explanations for different concepts and they successfully engage the community. Echo are the new kids on the block and here to change the way we invest in social and environmental impact.

  1. Go to Echo-Exchange.com.
  2. Sign up.
  3. Receive your free 1000E and buy the immies (impact shares) you like.
  4. Onboard new companies by rating them to earn more Echo!

Impact investing is a great way to make a positive social or environmental impact while generating a financial return on your investment. If you’re interested in impact investing, make sure to do your research first so you can make an informed decision and get started with impact investing as soon as possible.

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Henley Donaldson

Hi, I'm Henley Donaldson! I'm a writer who covers all things cryptocurrency, tech, and whatever else interests me.