What are Faith-Based Funds?
Sometimes called Morally Responsible, Biblically, or Socially Responsible Funds, Faith-Based Funds are a family of mutual funds that invests in companies that meet certain moral and ethical standards.
They avoid companies that manufacture or distribute things such as:
and/or other potentially offensive practices.
Today, morally responsible or faith-based funds are the fastest growing subset of the socially responsible investing category. Only a short time ago, many plan providers didn't recommend them because of their poor market performance and their high fees. Now, the fund performance and fees have improved significantly.