A Next Gen Investor’s Predictions On Impact Investing In 2020s
Without a doubt, the 2020s will be very significant in investment, as we witness the greatest transfer of wealth in the western world. In the United States, Baby boomers, who own approximately 60% of the wealth, will move mainly to their 70s and, therefore, will pass their assets to the next generation, or the Millennial generation.
In addition, it is understood that we are faced with the objective of achieving the Sustainable Development Goals (SDGs) by the end of the decade. The 17 SDGs are an ambitious agenda established by the United Nations (UN), which include the eradication of poverty and the achievement of gender equality. To achieve the SDGs, the UN estimates that an additional $ 2.5 billion per year will be required.
Next-generation investors enter impact investment
It is important to highlight the fact that we already see next-generation investors entering impact investment, looking not only at financial returns but also social and environmental returns, to close this gap.
And it is that with the next generation controlling more and more wealth, the 2020s could well be the decade for impact investment to generalize. In an exclusive interview with Forbes, Karam Hinduja, a next-generation impact investor, shares his predictions about impact investment for the decade. At 29, he is a member of the fourth generation of the Hindu family, included in Forbes as the third richest in India.
2020 is significant because it is a new decade. 2020 also refers to the perfect vision. This feeling will have a great effect on impact investment.
Karam Hinduja has already begun to invest in companies, such as Hungry, which provides work for chefs in the concert economy, Combate Americas, which empowers the Latino community in the United States, and Karma, a media company aimed at impact investors. Looking towards 2020, he expects his impact investment activities to accelerate. Looking across the field, he predicts three key movements in 2020 that will bring impact investments to the mainstream:
- The pressure of consumers.
- Increasing the attractiveness of emerging markets.
- A new wave of investors.
Source: Bonnie Chiu | Forbes