Impact investing is becoming more mainstream thanks to millennials embracing the approach, according to a recent survey.
Overall, only a third of 1,216 investors surveyed by Fidelity Charitable said they take part in impact investing. The respondents, who were surveyed in July and August last year, have a minimum of $25,000 in investable assets outside of an employer retirement plan.
But Fidelity found that the proportion of those who take part in impact investing rose to 61% among millennial respondents.
Millennials aren’t just doing it to align their money with their values: 62% said they believe impact investing has a bigger chance than traditional philanthropy to drive positive long-term change, Fidelity found.
Moreover, millennials think impact investing is also good for their wallet: two-thirds said they believe the practice is a smart investment, according to the survey.
In addition, impact investing is catching on more broadly, as 40% of respondents who said they are not engaged in the practice plan to be in the coming year, Fidelity found.
In addition, 41% of those who’ve already made impact investing a part of their approach said they plan to increase their allocations to such investments, and almost none of them plan to decrease them, according to the survey.
Financial advisors can be at the forefront of making impact investing a bigger part of wealth accumulation, meanwhile.
Fidelity found that 39% of those who said they haven’t yet engaged with impact investments cite lack of knowledge as preventing them from doing so — and 31% of this group said they would rely on their financial advisor to help them overcome that gap.
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