New Delhi, Sep 16
India's high-net-worth (HNW) families can help the country become a $5 trillion economy by utilising their capital for social goals, using impact investing and blended financing techniques, a report said on Tuesday.
Impact investing means generating returns by investing in businesses that make a positive social impact. Blended finance is a technique where wealthy individuals mix their money in social business initiatives that receive grants or government funds to reduce risk.
Many HNW families continue to operate in silos and exhibit low retention in impact investing, according to the report from wealth advisory firm Waterfield Advisors and NPO organisation Impact Investors Council (IIC).
HNW family participation in impact investing is rising, but retention is weak. Of the 316 HNW families who entered in 2021, just 64 remain active in 2024, the report said.