The term aims to generate specific beneficial social or environmental effects in addition to financial gain, Impact investing is a subset of Socially Responsible Investing {SRI}. Impact Investment actively seeks to make a positive impact by investing, for example, in non-profits that benefit the community. Although the basic goal of impact investing is to help reduce the negative effect of business activity on the social environment and it can be considered an extension of PHILANTHROPY.

Impact Investing includes many different forms of capital and investment vehicles. Most of impact investing is done by Institutional Investors, but a range of socially conscious financial organization, web-based investment platforms and investor network, also offers individuals an opportunity to participate in it. Because socially and environmentally responsible practices tend to attract impact investors, companies can financially benefit from committing to socially responsible practices, and investors also tend to profit