Abstract:

The main focus of this paper is to describe and analyze the variety of impact products that are available for institutional and individual investors. As we already know, the impact investment product possibilities are highly fragmented. While impact products are also available for institutional investors, regulations governing fiduciary responsibility prohibit institutional investors from making certain impact investments. Furthermore, the regulatory environment makes it difficult and costly to structure impact products for retail investors, and consequently, there are relatively few retail products available. Impact investment products are offered across a wide spectrum of asset classes, and offer a range of risk and return profiles. Impact investments should affect the product portfolio of each included participant in every important sector. For this reason it is more than important to focus our view on description of product variety in the alternative investing possibilities. We are assuming that investors have a wider range of expectations for impact investment financial returns what estimates significant market opportunity for impact investment in various parts of financial markets.