What are the risks associated with impact investing?
An example of an AI chatbot conversation about the risks in impact investing.
What are the risks associated with impact investing?
Impact investing can involve various risks, including market risk, liquidity risk, and impact measurement challenges.
Can you explain market risk in this context?
Market risk refers to the potential for losses due to changes in market conditions, affecting the financial returns of investments.
What about liquidity risk?
Liquidity risk is the risk that an investor may not be able to sell their investment quickly without a significant loss in value.
How can I mitigate these risks?
To mitigate these risks, diversify your portfolio, conduct thorough due diligence, and stay informed about market trends.
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