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Are Socially Responsible Investing and Impact Investing the Same Thing?

These terms are often used freely, but they aren’t interchangeable. It is essential to understand—and be able to explain—the differences between socially responsible investing and impact investing so investors can make informed decisions. 

In their most basic forms, socially responsible investing and impact investing are very similar. They both seek to consider financial return and social good to bring about a social change. Beyond this, though, socially responsible investing and impact investing begin to branch off in different directions. 

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