Social inclusion is the process of improving the terms on which individuals and groups take part in society, particularly where they have been disadvantaged on the basis of their identity, their access to housing and financial products, or limited opportunities to achieve a real quality of life.
As the UN points out, inequality threatens long-term social and economic development, harms poverty reduction and destroys people’s sense of fulfilment and self-worth. This in turn can breed crime, disease and environmental degradation.
We invest in companies that are actively trying to improve the level of social inclusion across societies, from gender equality in the US to accessible mortgages in India. Here’s one example of how we have invested some of the fund’s assets.
The most basic financial services allow each of us to protect ourselves against hardship and invest in our future. Whether or not someone has access to these services will fundamentally shape their chances of improving their economic circumstances. For the financially weak, access to loans can help them build a business or fix their roof. Savings products allow them to put away money for family or retirement. Insurance products can provide protection in hard times. All these can help improve their chances of living a full and healthy life. For developing economies, breaking free of the vicious cycle of poverty and entering a virtuous cycle of economic growth can become more possible.
Levels of extreme poverty are falling in India, but it remains home to an estimated 76 million people living on less than US$1.90 a day. The world’s second most populous country is also urbanising rapidly, presenting challenges that are exacerbated by increasing housing demands. Housing Development Finance Corporation (HDFC) is one of India’s leading private banks. One goal of such an organisation is to promote home ownership in India by providing long-term mortgages to low and middle-income families. As well as loans, which are also offered to companies for building and purchasing commercial property, HDFC offers insurance and asset management services through more than 4,800 branches.
Against a key metric of financial inclusion, India is making great progress. Between 2011 and 2017, the share of adults with a financial account soared from 35% to 80%.
To find out more about how HDFC is making a positive impact on the lives of families across India, visit their website.
The value and income from a fund’s assets will go down as well as up. This will cause the value of your investment to fall as well as rise and you may get back less than you originally invested.