Our values help build the very core of who we are, our personal identity. They help define our beliefs, preferences, and character, but should they also define how we invest our money?
Investing in yourself and the greater good
This is the idea behind impact investing, which refers to “investments made into companies, organizations, and funds with the intention of generating a social impact alongside a financial gain,” according to Global Impact Investing Network (GIIN). Many people are now investing in socially or environmentally responsible companies that share a connection with their own values.
Investing in mutual funds or companies that support certain social issues, like education, the reduction of poverty, or the environment seems to be a good platform for community support; however, many are nervous that it could come at the expense of their financial returns.
Can impact investing pay off?
The Global Impact Investing Network (GIIN) says, “Although impact investors have diverse financial return expectations, many funds pursue market-competitive and market-beating returns.” This means that you don’t have to sacrifice monetary gains to invest in a way that aligns with your beliefs. Many socially conscious investments provide returns comparable to similar traditional investments.
In May of 2017, the GIIN also reported $114 billion in impact assets currently invested. This is only a small portion of the entire global market (estimated at $73 trillion), but the figure has grown tremendously in recent years. With impact investing appealing to more and more Americans who want to both grow their assets and give back to society, this trend is likely to continue to grow.
At MoneyLion, our values define our actions
At MoneyLion, everything we do as a business is founded in our belief that Americans deserve an easier, more affordable way to get ahead financially. We also use our platform to help support organizations that are making a difference in the world.
For example, we recently supported the Women In Need (WIN) organization by donating to their annual Gala in New York City. WIN has spent the last 33 years providing safe housing and other critical services to homeless women and children, helping them rebuild their lives.
Philanthropic giving has long been the dominant form of supporting a cause that you believe in. (Check out our post, Find your inner philanthropist: 5 free ways to help your community.) Now, with impact investing, you can also invest in companies that share your values as you work to build your savings over time.