What Is Impact Investing?
Impact investing has a positive environmental focus, but what about its future?

Published January 14, 2024

Impact investing is gaining popularity among fund managers, institutional investors, and traders.
Impact investing channels funds into environmentally and socially beneficial companies, providing both a goal and a positive impact. This differs from traditional investing which focuses solely on profit.
Investors play a vital role in identifying businesses aligned with impact investing using a variety of instruments such as mutual funds, exchange-traded funds (ETFs), and bonds.
For example, the Bill & Melinda Gates Foundation's investment in Global Partnerships supports microfinance institutions and social enterprises, helping to combat poverty and enhance healthcare in underserved areas while generating financial returns.
» New to trading? Learn the fundamentals of CFD stock trading
The Future of Impact Investing
Impact investing is currently in the spotlight, but it faces criticism for neglecting industries vital to the economy, like fossil fuels.
Still, the stock market's verdict remains uncertain. Fund inflows have been declining since their 2020 peak, and impact funds have struggled to match the performance of traditional alternatives. Additionally, political backlash may deter some investors in the short term. In essence, impact investing is no less risky than other forms of trading, and should only be considered by traders who have a solid grasp of the fundamentals of trading psychology.
» Need more practice? Consider a risk-free demo account
Note: Fortrade offers the ability to trade the price changes of instruments with CFDs and NOT to buy/sell ownership of the instrument itself
Related Articles

Defining Bid-Ask Spread: How Does It Work in Forex Trading?
Andrew Moran
January 10, 2024

The Zig Zag Indicator Strategy: How to Make the Most of It in Forex Trading
Andrew Moran
October 5, 2023

What Is API Trading & How Can You Use It?
Filip Dimkovski
February 22, 2024

The Basics of ETFs: Fundamental Terms and Concepts
Marcel Deer
February 22, 2024

Learn How to Trade Gold as a Beginner: A Safe Haven Instrument
Andrew Moran
February 22, 2024