Financial Quotient

What is impact investing?

Impact investors in Asia are mostly investing in microfinance and other financial services, most of which are still expecting market returns.
Impact investors in Asia are mostly investing in microfinance and other financial services, most of which are still expecting market returns.PHOTO: AFP

Impact investing refers to a type of investment made in enterprises or funds with the intention of generating both financial returns and environmental and/or social impact for investors.

Called impact investors, they can be individuals or institutional investors such as development finance institutions, foundations, endowments, pension funds or insurance firms.

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A version of this article appeared in the print edition of The Sunday Times on May 20, 2018, with the headline 'What is impact investing?'. Print Edition | Subscribe