One of the fastest-growing areas of investment is "social impact" funds, which invest in companies that have a positive social or environmental impact on the world.
A new survey by the Responsible Investment Association of Canada found that 36% of Canadian investors have invested in a impact fund in the past year, up from 29% in 2016, reports the Globe and Mail.
The funds invest in companies that have a positive social or environmental impact on the world, but they can also invest in more traditional areas of the economy, such as tech, media, and agriculture.
The survey found that investors are looking for both financial returns and a positive impact on the world, and many of the 42 impact funds in Canada are relatively new, with less than three years of operation, making it difficult for investors to gauge their efficacy.
"The line between financial gains and social good is not as rigid as once thought," writes Ian Tam, CFA, in the Globe and Mail.
"It is a testament to the evolving mindset of investors who are increasingly prioritizing sustainability and ethical considerations in their investment choices."
He warns that investors should not just be "financial savvy," but "socially conscious, understanding the intricacies of where and how their money is being utilized."
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