Make A Difference

Investments have stepped beyond the realm of assets and have bordered on the transcendental with the idea of living a fuller life

- Rajmohan Krishnan

The curtain closes on 2017 and with New Year on the horizon, it is worthwhile to assess the year gone by and look at the possibilities for the coming year. Last year a mixed bag of global events (political, economic, social and technological) have influenced the overall investment environment.

On a positive note, the ease of doing business globally has gone up. Renewables have galloped on the back of half of the new additions to the power generation capacity globally. However, the global food situation, water crisis, geopolitical tensions, climate change and education continue to be areas of widespread concern.

In this backdrop, let us assess the possibilities the ultra- rich can explore while making a difference to the world at large.

SOCIAL IMPACT INVESTMENT 

Having established themselves in their respective vocations, ultra high networth individuals and families usually aim to give back to the society. This is often done by championing a cause close to them- such as opportunities for women or education for the underprivileged or in the arena of elderly care. Responsible investing has become a popular way for the ultrahigh net-worth individuals and families extending their philanthropic initiatives in a more structured fashion.

This can be done through various modes - including but not limited to identification and funding social startups, for whom, access to capital is often a stumbling block to achieve a viable scale. Other ways of impact investing are through opportunities in other asset classes and investment products such as climate-focused bonds, community investment loan funds and global ESG mutual funds.