Assignment

Areeba Ahmad Ansari

MS Management Science

Semester: 1st

Goldman Sachs: Making an imprint in

impact investing
Do you think capital markets are efficient? And how does impact investment going to fair in
future market?
Yes, I think capital markets are efficient because they provide the capital flow to the investors
and issuers. It also provides with the transparency and liquidity. The efficiency of capital markets
is important because it helps ensure that investors receive a fair return on their investments and
that capital is allocated efficiently to its most productive uses, which ultimately benefits the
broader economy.
Impact investment is relatively new, but it is to be expected that it will expand in future. Because
investors are prioritizing social and environmental benefits along with financial returns. Impact
investments can promote good change in issues like poverty, social injustice, and climate change
by funding businesses that have a positive impact. Impact investment have the ability to create
both financial and social benefits..

How do you think equilibrium can be achieved on impact Environmental, Social and Governance
(ESG) investments and markets based cap return/ excessive return capital market rate?
It will be difficult to achieve equilibrium between ESG investments and market based on cap
return. Because it would need to balance the social and environmental impact of investment and
to generate financial returns. But the equilibrium can be accomplished through improving ESG
factor transparency and disclosure. On the basis of this Investors can take better decisions and
hold businesses responsible for their social and environmental effect.