Top-Rated Impact Investing Platforms for Financial Returns

If you're looking to make a positive impact while growing your wealth, consider impact investing platforms that offer financial returns.

Impact investing platforms like Better Ventures and Impact Hub offer financial returns through investments in companies addressing social and environmental issues.

Here are some top-rated impact investing platforms for financial returns:

Impact Hub, for example, has a 12% annual return on investment for its members.

Better Ventures has invested in companies like Wild Earth, which has developed a plant-based meat alternative that's more sustainable than traditional meat production.

Impact Hub's investments are focused on companies addressing issues like climate change and education.

Better Ventures' investment in Wild Earth has resulted in a significant reduction in greenhouse gas emissions.

Wealthsimple is a top-rated impact investing platform that offers a range of features to help you make a positive impact with your investments.

Wealthsimple's investment plans are designed to be low-cost and easy to use, with a minimum deposit of just £1. Their Original portfolios offer a range of investments from the UK and overseas, while their Ethical investment plans focus on environmentally and socially responsible investments.

One of the standout features of Wealthsimple is their low account fee of 0.6% per year, which is significantly lower than many other investment platforms. They also offer a range of investment options, including stocks and shares ISAs, junior ISAs, and pensions.

Wealthsimple's portfolios are carefully curated to ensure that they align with your values and goals. They offer a range of risk levels, from cautious to adventurous, and their portfolios are regularly reviewed to ensure that they remain aligned with your needs.

Here are some key features of Wealthsimple:

When evaluating an impact investing platform, it's essential to consider multiple factors to ensure your investment is both financially and socially responsible.

Assess the company's financial performance by looking at their current financial situation, total equity raised, funding partners, and financial reports (if available). This will give you a clear picture of their financial stability and potential for growth.

A platform with medium to low returns may not be the best option, as it may not keep pace with inflation. Be wary of high operational fees, which can eat into your returns.

To mitigate risks, look for platforms that have a third-party audit of environmental impact, such as a certified green bond. This ensures that the platform is transparent about its environmental impact and is working towards sustainable goals.

Here are the key criteria to evaluate when choosing an investment platform:

This framework will help you make an informed decision and choose a platform that aligns with your values and investment goals.

An investment fund is a type of investment where a group of people pool their money together to invest in a variety of assets, such as stocks, bonds, and other securities.

Investment funds can be a great way to diversify your portfolio and potentially earn higher returns than investing on your own. However, it's essential to choose a fund that aligns with your values and goals.

There are different types of investment funds, including ethical investment funds that focus on socially responsible companies.

Ethical investment funds, for example, consider the environment, social, and governance (ESG) factors of a company when making investment decisions. This means they look at how well the company is managed, its impact on the environment, and its treatment of employees and customers.

Here are the three key ESG factors to consider:

Personal Capital is one of the most popular investing apps on the market, with over two million users.

Its free version is a great starting point, but for those who want more, the paid wealth management feature is extremely robust. It blends automated investment tools with active human management.

Your portfolio is managed according to Modern Portfolio Theory, which invests across multiple asset classes to properly diversify.

The platform selects investments for you based on environmental, social, and governance (ESG) criteria, making it a great option for investors who incorporate Socially Responsible Investing (SRI) into their activities.

Individual U.S. stocks are screened, and those in industries like tobacco, adult entertainment, small arms, gambling, and the energy sector are excluded from your portfolio.

Choosing an investment platform can be a daunting task, especially for those new to impact investing. It's essential to look beyond financial returns and consider the social and environmental impact of your investment.

Impact investors are willing to take on financial risks similar to those in peer-to-peer lending platforms. To mitigate these risks, it's crucial to investigate a platform's financial performance.

Assessing a platform's company financials is a good starting point. This includes evaluating their current financial situation, total equity raised, funding partners, and financial reports whenever available. A platform with a solid financial foundation is more likely to succeed.

When evaluating a platform's return on investment, consider the expected financial returns in annual terms and operational fees, if applicable. Medium to low returns and high operational fees can be a red flag.

A diversified portfolio is also essential for impact investors. This means assessing the amount, size, type, and frequency of projects offered on the platform. A platform with a diverse range of projects can help spread risk and increase potential returns.

Due diligence and risk assessment are also critical components of choosing an investment platform. This includes evaluating the selection and onboarding process for partners and projects, as well as the quality of loan or offer documents. Look for platforms with a low average default rate and guarantees.

Finally, consider the impact of your investment. Assess the social and environmental impacts, disclosure of impacts, relevance of SDGs being addressed, and societal reach. A platform that prioritizes transparency and social responsibility is more likely to align with your values.

Here are some key criteria to evaluate when choosing an investment platform:

Choosing investments for your platform is a crucial step in creating a thoughtful and impactful investment strategy. You can start by defining which sectors to avoid, also known as negative screening. A common list of sectors to keep clear includes tobacco, defence-related, alcohol, gambling/casino, and adult entertainment.

To apply a ESG scoring mechanism to firms, you'll need to look for specific financial metrics. However, the devil is in the details, and the process can be complex. One approach is to rank firms based on their ESG scores, but the exact metrics and weightings to use will depend on your investment goals and values.

Once you've defined your investment universe, you can use a ESG scoring mechanism to rank firms and choose the most suitable ones. Some platforms, like Good Capital, focus on connecting investors with mission-driven companies and social enterprises that have the potential to create significant social and environmental impact.

To create transparent and measurable impact, platforms like ImpactAssets help investors track the impact of their investments using detailed metrics and reports. This ensures that investments are creating the intended positive change.

Here are some examples of ethical funds you can invest in:

Remember to research each fund thoroughly and consider factors such as fees, performance, and alignment with your values. By choosing the right investments, you can create a portfolio that not only generates returns but also makes a positive impact on the world.

Investing in a platform that tracks the impact of your investments is crucial for creating positive change. This is where platforms like ImpactAssets come in, helping investors make informed decisions with detailed metrics and reports.

A crucial element of impact investing is ensuring that the social or environmental impact of investments is measurable. This transparency not only helps investors make informed decisions but also ensures that investments are creating the intended positive change.

Wealthify, a digital wealth manager, offers pre-made portfolios that allow you to set your own risk/reward threshold and invest through a general investment account, stocks and shares ISA, junior ISA, or pension. They also provide transparency in their investment costs, with fees of 0.6% of your portfolio value and investment costs of on average 0.16% for original plans and 0.7% for ethical plans.

Personal Capital, one of the most popular investing apps, offers a paid wealth management feature that blends automated investment tools with active human management. Their platform selects investments for you based on environmental, social, and governance criteria, excluding individual U.S. stocks in industries like tobacco, adult entertainment, and small arms.

To evaluate the impact of your investments, consider the following criteria:

SoFi Invest offers zero minimums, allowing anyone with shallow pockets to invest, making it a great option for beginners.

Kiva's low barrier to entry empowers anyone, regardless of their wealth, to become an impact investor, facilitating positive change and generating a sense of community among lenders.

Good Capital connects investors with mission-driven companies, social enterprises, and nonprofits, providing a curated selection of investment opportunities that have the potential to create significant social and environmental impact.

Many impact investing platforms, such as Kiva, are democratizing access to investments, making it possible for anyone, regardless of income level, to participate in impact investing and contribute to social and environmental change.

SoFi Invest's Doing Good collection is a competitive choice for impact investments, offering zero management fees and access to certified financial planners, making it an ideal starter option.

Kiva has facilitated over $1.7 billion in loans across 80 countries, allowing lenders to invest in projects that improve lives while also earning repayments over time.

You can invest in various types of projects on these platforms, including solar home systems, agriculture, local entrepreneurs, and SMEs. Lendahand focuses on providing working capital for small entrepreneurs in emerging countries.

The minimum investment on most platforms is relatively low, ranging from 5 GBP to 50 EUR. GoParity has a minimum investment of 20 EUR, while Trine's minimum is 25 EUR.

Some platforms offer guarantees or partial guarantees for their projects, such as Lendahand's projects that have up to 50% guaranteed by SIDA, the Swedish International Development Agency. GoParity's projects have partial or full guarantees by a third party.

Investors from the European Economic Area, Switzerland, and the UK can invest on Lendahand, while GoParity targets mainly European investors. However, US citizens can create a profile on GoParity.

It's essential to remember that crowdfunding is a high-risk investment, and you should only invest in line with your risk appetite. The Dutch Autoriteit Financiële Markten (AFM) advises investors to only commit 10 percent of their investable assets via crowdfunding.

Interactive Brokers' IMPACT App is a great tool for impact investors, allowing you to select your own conscious investment plan that aligns with your values.

The app is easy to understand and use, making it a great option for inexperienced investors who want to create an elaborate portfolio that aligns with their ESG values.

You can even invest in opportunities that offset your energy usage of the app itself!

Here are some top-rated impact investing platforms and apps:

These platforms offer a range of features and benefits, from solar home systems to socially responsible investing portfolios.

The amount you should invest in crowdfunding impact investing platforms can be a tricky question. As a general rule-of-thumb, the Dutch Autoriteit Financiële Markten (AFM) advises investors to only commit 10 percent of their investable assets via crowdfunding.

This means that if you have a large portfolio, you might not want to put all your eggs in one basket, so to speak. But if you're just starting out, 10 percent might be a good place to start.

The minimum investment amounts on these platforms vary, with some as low as €5 (Abundance) and others as high as €100 (MIRIS X).

Wealthify is a popular investment platform that allows you to start investing from just £1. This means that anyone can get started with investing, regardless of their budget. You can invest as little as £1, making it an ideal option for those who want to dip their toes into the world of investing without breaking the bank.

Wealthify offers a range of investment options, including a socially responsible investment (SRI) portfolio that invests in companies that meet certain environmental, social, and governance (ESG) criteria. This type of investment is perfect for those who want to invest in a way that aligns with their values.

One of the benefits of Wealthify is its low-cost structure. It charges a flat fee of 0.3% per year, which is much lower than many other investment platforms. This means that you can keep more of your money, rather than paying high fees to invest.

If you're new to investing, Wealthify's platform is easy to use and understand. It's designed to be user-friendly, so you can navigate the site and make investments with confidence.

Here are some of the key features of Wealthify's SRI portfolio:

Overall, Wealthify is a great option for anyone who wants to invest in a socially responsible way. Its low costs, user-friendly platform, and range of investment options make it an ideal choice for those who want to get started with investing.

Hargreaves Lansdown offers a wide range of ethical funds and shares, making it a great option for those looking to invest in socially responsible companies.

No account fee is charged for shares, which is a great perk. You can also buy a wide range of shares to diversify your portfolio.

HL's in-house expert research helps you build a portfolio of ethical ETFs. This means you can make informed investment decisions with the help of experienced professionals.

Funds are charged at 0.45% for the first £250,000, which is a relatively low fee. However, shares are charged at £11.95 per deal, unless you make over 20 deals per month, in which case it's £5.95.

Here's a summary of the key fees: