Impact investing is the process of investing funds in companies that reap financial profits at the same
time create a positive social and environmental impact that benefits the company and saves the
environment. Impact investing has become popular among young investors as well as very old investors.

The companies that focus on impact investing concentrates on principle based selling of their products. These companies follow principles that save the mother earth and its inhabitants by reducing pollution. Here are five of the top mutual funds for impact investing.

1. Parnassus Endeavor Investor: Here, the investors get to invest their money in a company that
facilitates the growth of the employees. This is mainly because they support an environment that is
committed to the development of their employees. When the environment of the company is healthy,
the employees work better. When the employees are highly satisfied, lesser are the chances that they
shift to some other company. The investors get a chance to invest in a company that retains its
employees better than its competitors. The companies in which they refuse to invest are those involved in gambling, tobacco, and similar companies. They also don  invest in fossil fuel companies. Their average yield for five years is 14%.

2. TIAA- CREF social choice bond retail: This company wholly invests 80% of its investment in bonds of various companies that meet ESG standards. They invest in many corporate bonds in addition to investing in the US municipal and government bonds. In addition to this, they invest in energy and natural resource companies. This has given a yield of 1.24 % from the commencement of the present financial year and has won a 5-star rating by morning star risk assessment company.

3. Vanguard FTSE social Index Inv: This company invests in more than 400 companies and among other companies Apple, Alphabet and Microsoft require a special mention. They also invest in healthcare technology based companies. It has a net asset of 2.89 billion and it has fetched a yield of 7% to date. The investment managers make sure that they select those companies that support a workplace environment that employs diverse people from different walks of life and recommends at least one woman on the board of directors.


4. Walden equity: All kinds of companies, be it a small company or medium or even large companies is chosen by them to invest their funds to earn maximum profit out of their clients & investment. A major portion of the money collected by this company is invested in securities and rest is invested in derivatives. They refrain from investing in nuclear weapons and alcohol companies.

5. Domini Impact equity investor: This is one such company that invests in companies that let the
investors  money grow and they invest even in companies out of the US. They only invest in large and medium cap companies and stays away from small cap companies. They also give more importance to companies that support employees wellbeing and show concern for humans by being eco-friendly. In short, the impact investing is parking your money in companies that help its customers to earn maximum profits and select those companies after screening for ESG principles.
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