A third of wealthy individuals have an active interest in the social investment market, according to new research from Nesta.

The research, Investing for the good of society: Why and how wealthy individuals will respond, quizzed 505 people with investment assets ranging from £50,000 to £1m on their interest in social investment.

It found 39 per cent of wealthy individuals had an active interest in the social investment market. Those under 40 years of age were more likely than those over 55 to be receptive to social or ethical investments.  

The research also found that when considering making social investments, two-thirds (67 per cent) of wealthy individuals are likely to invest in a financial product that benefits society as well as giving a comparable return on their money.

Nesta has also released complementary research into demand for social finance conducted by New Philanthropy Capital which finds the majority of demand for capital is soft capital – patient, high-risk and likely to yield lower financial returns.

Separetely, Nesta has released details on 20 proposals for innovative social finance products developed through its Big Society Finance Fund.

Nesta will invest £1.2m in four of these products.

The products are –

• Fair Finance – to provide accessible, affordable and responsible financial services to the financially excluded
• Finance South East and Resonance – to invest in social enterprises that will deliver substantial growth and appropriate profit to meet investor requirements
• Impact Assets – a fund designed to drive capital to maximum  environmental, social and financial investment impact 
• Charity Bank – to support large charities and social enterprises to deliver their mission more effectively.

To find all three reports click here.