DIY impact investing on the rise

DIY impact investing on the rise
Credit: Liza Summer from Pexels

Interest in DIY impact investing has quadrupled, according to figures from The Big Exchange.

The impact investment platform’s customer base grew by 300 per cent over the last year, with the majority of investors opting for a ready-made bundle of funds.

“Customers tell us they are easy to understand and give them good access to a range of asset managers and funds - and thereby diversifying their investment,” says Jill Jackson, CEO of The Big Exchange.

The Big Exchange is an investment platform which specialises in sustainable and impact investing products. 

The platform is expanding its range of funds to include:

  • EdenTree Responsible & Sustainable Short Dated Bond
  • Federated Hermes Impact Opportunities
  • Janus Henderson Global Responsible Managed
  • Janus Henderson Global Sustainable Equity
  • Janus Henderson Sustainable Future Technologies
  • Janus Henderson UK Responsible Income
  • Triodos Equity Impact
  • Triodos Pioneer Impact
  • Triodos Sterling Bond Impact

Dominic Rowles, lead ESG analyst at Hargreaves Lansdown, says that any investment in impact funds should form part of a well-diversified portfolio.

“Impact funds tend to invest in a relatively niche area of the market, so we expect them to perform differently to more traditional funds, and the wider stock market, at times too.”

Last year Hargreaves Lansdown saw a 106 per cent increase in the number of impact fund net buys when compared to 2020, according to the platform.

Triodos Bank, which offers a range of ‘ethical ISAs’, has also seen an uptick in customers, with the provider having seen an 85 per cent increase in new stocks and shares ISA customers in 2021 versus 2020.