Investment Strategy: Christian Funds

The Need for Christian Funds

There are a large percent of the population which is too busy to be regular churchgoers, because either it is not convenient, they are on the road or just too negligent about their duties. Such people do find other ways of expressing their faith in Christianity and one of this is by investing in Christian funds that uphold beliefs and teachings of the faith. This way they can be sure that the money they have invested is given to companies that follow biblical precepts. Such investments are largely made by people in mutual funds that use religious teachings of Christianity in the process that they use for investment of funds given to them for the purpose.

Investment Source : Flickr : https://www.flickr.com/photos/djevents/4727638315/

The Investment Focus of Christian Funds

Christian funds would never invest in companies that are involved in actions that promote pornography or abortion or even those that advocate Planned Parenthood. They would even screen the HR policies of the companies and keep away from any that offer their employees any assistance for abortion or benefits to nonmarital partners. This sort of screening keeps out a substantial 15 to 20 percent of companies out of the investment chain being contemplated by Christian funds. While maintaining such restriction the funds do try and invest in companies that are trading for less than their intrinsic value, and also maintain well diversified portfolios that allow them to stay clear of any major losses in case of cyclical recessions that affect some industries.

Any involvement of a company in alcohol, tobacco or gambling or lotteries is also likely to keep Christian funds away from them. Some peace loving funds may even screen out any companies associated with firearms, explosives and other such industrial activity. The large industrial companies have quite often a very large area of operations and may get involved in some activities that are not considered as ethical or upholding the social and moral principles of a religion. It therefore becomes quite difficult at times for Christian funds to screen them all out. But companies dealing in software and healthcare are considered companies that do not contravene religious principles. Fortunately such companies are doing well and helping Christian funds do well for their investors.

Advice on Christian Funds

Some money management firms have realized that there is a need for such faith based investing and do the necessary research for the clients if they have such a requirement. They however require larger sums for investment so that the research is worth their while. There also are some firms which give advice that will allow people to invest in firms that follow Christian principles. They do this for a fee and rely on the 2000 verses of the Bible that give wisdom on how to deal with money and finances.

References

Business Week – Funds for Christian Investors https://www.businessweek.com/investor/content/mar2005/pi20050325_6141_pi050.htm

Christian Mutual Funds - https://www.prestigeadvisors.com/Christian-Mutual_Fund.htm