One avenue in Islamic social finance for longer-term investments is an impact investment fund or “social impact investment fund”. Impact investment funds are investments that explicitly aim to achieve specific social objectives along with a financial return and measure the achievement of both. They ethically accord with Islamic principles and provide a form of public-private partnership that can provide an effective funding mechanism and serve the interests of all parties. As an ethical and morally acceptable form of investment from the Islamic perspective, the impact investment fund model could hold great potential both for entrepreneurs and investors.
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