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I am interested in social impact bonds. Are these a good investment?
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I am interested in social impact bonds. Are these a good investment?
Hi there,
Social impact bonds are a success-based debt instrument. That means that whether or not you earn yields depends on whether or not the purpose for which the capital was used is successful.
Because returns on investments depend on the outcome of social projects which may or may not be successful, they are relatively risky investment products.
When investing in social impact bonds, consider investing in social projects which you would donate money to. That way, if the project fails and you lose your capital, you still benefit from having donated to a cause you support.
Best regards from Moneyguru
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