Impact Investments And Its Challenges

Impact Investing

The modern world needs more and more capital for development. The capital makers are doing their best to achieve this. They are using various ad-hocs to maintain the aura of this modernity along with the continue paddling to strive the better future for the existing as well as coming generations. Investors like Aman Mehndiratta have come forward, took the reins in their hands and have started investing in Impact Investments.

Now the question arises, investment was fine but what is impact investment now??

So, let’s make the concept a bit clear to you, here is the explanation what is impact investments and what it takes to be an impact investor.

Investments made by investors into funds, companies, and organizations having the intention to generate a beneficial, measurable, environmental or social impact and alongside an expecting a financial return, is called impact investment. In other words, we can say that Impact investments are there to provide capital that can address social as well as environmental issues.

Investing for good

Aman Mehndiratta is a great philanthropist. He never fails to come up with the ideas which will do good for society and its betterment. Impact investing is one of those ideas. By investing the hard-earned money the ventures for impact, he is making a great difference in the field of giving back.

AS we have discussed earlier that this is beneficial for our social and environmental measures, it is not as simple sailing as it seems to be. There prevail lots and lots of obstacles, difficulties, and challenges in the path of doing good with the reference of impact investment.

Investor and philanthropist Aman Mehndiratta has gone through many of obstacles while practicing this kind of investment, but he never stopped. His love for society and humankind is that immense that any challenge was not hard enough to conquer for him.

The challenges faced by Investors in impact investing

Regulatory barriers:

This perception often comes in the limelight that there are significant legal and regulatory barriers. These barriers are opened for developing retail impact investment products, and particularly they enable products which are said to be qualified investments.

While some additional considerations there are that, many of these barriers tend to be similar to what is required for conventional product development.

Lack of knowledge:

The mainstream media often doesn’t cover the social finance nor is it prominent within traditional financial education. Within the financial sector, social finance is often used interchangeably and sometimes even incorrectly too. Although with terms such as corporate social responsibility and impact investment, people often get confused.

Lack of investor awareness:

There is no any second thought that many retail investors are unaware of the product opportunities available around impact investing. Impact investing options tend to be limited and often not visible to retail investors if compared to conventional products in real.

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