Impact investing: The boom harbors dangers

factory in Bangladesh

Impact investing allows investors to invest in more jobs in emerging markets.

(Photo: mauritius images / Zakir hossain chowdhury zakir / Alamy / Alamy Stock Photos)

Frankfurt The impact investing market is one of the fastest growing segments in the financial industry. The investments are intended to have a positive impact on society, for example by creating jobs in emerging countries.

The investments are particularly popular with younger, well-heeled customers – but the boom also has a downside: there is more money than investment opportunities.

“Investment amounts in the area of ​​impact investing are growing faster than average compared to other asset classes,” says Peter Fanconi, head of Blue Orchard Finance. “Globally, the asset class grew by more than 30 percent in the period from 2018 to 2021 alone.” Nevertheless, the share of the total globally managed assets is still relatively small at around one percent.

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