Advice for those who want to enter the impact investing market

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A disciplined approach to impact investing and a long-term approach can help increase the likelihood that investors will achieve their financial goals. From diversification to capitalization to the role of various asset classes, "10 Things Every Investor Should Know About Investing" covers a wide range of principles that can help provide a greater sense of financial confidence.

The impact investing, or the quest to make tangible positive changes through your investments, has become a hot topic in the investing world. What you may not realize is that whether or not you're consciously investing for change, your investments are having an impact, says Megan Schleck, CEO of investment platform Coin.

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The impact investing It is about taking conscious control over the influence your investment decisions have on society and the world around you. "The more conscious we are as investors, the more power we have to make better decisions about our money," says Schleck. If you want to take charge of impact investing, start with these nine things beginners need to know about impact investing.

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The impact investing You keep investing, so the same rules apply. “None of the basic investing and financial planning guidelines change with impact investing,” says Sonya Dreizler, ESG and impact investing consultant to financial services firms at Solutions with Sonya. You still need to invest in a way that is well-diversified and in line with your risk tolerance as it works toward your financial goals, he says. And you have to be prepared to hold the market when the going gets tough. "The strongest indicator of personal performance is how well you stay invested over the long term, not the individual stocks or funds you choose," she says.

As with any investment strategy, the impact investing Start with your goals. Once you know your impact goals, you can determine the best responsible investing strategy to help you achieve them. "There are a variety of options for investors to consider in their responsible investing approach," says Amy O'Brien, Nuveen's global head of Responsible Investing.

Being on the same page means looking deeper than the name of an investment. Without much strictness around the naming conventions for impact investing, investors can find a variety of different approaches under the same umbrella term, Dreizler says. "And since impact or green or sustainable mean different things to different money managers, investors need to make sure they've found (a fund) that matches what they're looking for." Look at the fund's intentions listed in its brochure and its top 10 properties. If you want to know more about impact investing it is necessary to always be present and attentive to the investment market and keep your eyes open for all changes.

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