Can I match a fund to my religion?

By Chizoba Morah AAA
A:

Specialized mutual funds offer investments tailored for particular religions including Judeo-Christian faiths and Islam. As a point of interest, there are also funds for particular geographical regions, like Latin America or Europe; different sectors, like technology or retail; social or ethical beliefs, like those related to the environment or to health.

Religious, or faith-based, funds were created for people who want to invest based on the principles and tenets of their faith. Religious funds are similar to ethical funds, but ethical funds invest in companies based on social issues, while religious funds invest in companies based on moral ones. For example, some companies invest in funds that follow Islamic law, while others seek funds that incorporate Catholic values. (To learn more about this topic, read our related article Ethical Investing.)

Investing in a faith-based fund is just like investing in any other fund. You must find a firm that offers religious mutual funds and then thoroughly research the funds and their performance to make sure they match your investment goals for growth and yield. Contact the firm's customer service department with questions or concerns. When you are satisfied that the fund meets your criteria, including religious adherence, inquire about purchasing.

Getting started on your search for faith-based funds can be as simple as conducting an internet search to find reports on funds that rank sustainability, level of social responsibility and religious affiliation.

To learn more about mutual funds screened for Sharia compliance, read our related article Working With Islamic Finance.

This question was answered by Chizoba Morah.

RELATED FAQS

  1. Why do index funds tend to have low expense ratios?

    Understand what an index fund is and why the nature of index funds causes them to have lower expense ratios than more actively ...
  2. Why is a mutual fund's expense ratio important to investors?

    Understand the nature of mutual fund expense ratios, and learn why it is critically important for investors to be aware of ...
  3. What kinds of expenses are included in the expense ratio?

    Understand the variety of costs and charges that are included in the total expense ratio assessed to investors using mutual ...
  4. What are common mutual funds an investor should consider for investing in banks?

    Discover some of the mutual funds that are most popular with analysts and investor for investing in the banking industry ...
RELATED TERMS
  1. Dividend

    A distribution of a portion of a company's earnings, decided ...
  2. Sharpe Ratio

    A ratio developed by Nobel laureate William F. Sharpe to measure ...
  3. Bad Faith Insurance

    An insurance company’s appalling or malicious refusal to pay ...
  4. UDAAP

    Misleading or harmful behaviors by those who offer financial ...
  5. Computer Crime Insurance

    An insurance policy that provides protection from crimes committed ...
  6. Duty Of Loyalty

    A director's responsibility to act at all times in the best interests ...

You May Also Like

Related Articles
  1. Professionals

    Should Investors Nix Actively Managed ...

  2. Mutual Funds & ETFs

    Are These 2015's Most Promising Mutual ...

  3. Professionals

    State Street Slashes ETF Fees

  4. Stock Analysis

    Will Spinoffs Give American Capital ...

  5. Mutual Funds & ETFs

    Pimco and Vanguard: A Tale of Two Fund ...

Trading Center