HIT funds stand for the Hometown Investment Trust fund that became a new source and a platform to make a connection between investors and projects in their own locality. The platform provided a sharing space for personal knowledge and interests. As per Yoshino and Kaji (2013), projects are preferred per individual investors and investments made through internet services.
In Japan, one of the major applications where HITs used their funds is wind and solar power projects where individuals raised money from $100 to $5,000 interested in promoting green energy. Many Japanese people invested a small amount of money through these funds for the construction of wind and solar power.
Advertisements through the internet created a powerful impact to push people to become investors for these projects. A new platform was provided by the Internet marketing companies where investment in such projects and marketing such projects created a powerful impact.
Information by HIT funds was provided by local banks to start using the information. The projects got a serious approach and if it was performed well and received properly by individual investors then banks started to grant loans for such projects.
As we know, renewable energy projects are long-term, and they are considered to be risky became a sustainable adventure for many investors who could trust the HIT funds and the money was assured and trusted that it will be used in the benefit concerning the long-term profits.
The approach led to an alternative financial vehicle other than banks to venture into solar and wind energy where it got expanded to Cambodia, Vietnam, and Peru. Even the Thailand government, Malaysia’s central bank, and Mongolia are showing a keen interest in such an opportunity.
Source:- Handbook of Green finance.