What you need to know to invest in these types of funds By Christabel Padmore People of different faiths face certain dilemmas when they consider making financial investments. They may want to feel comfortable that the money they invest adheres to their principles and certain parameters of their religion. In reaction to these concerns, the mutual fund industry is making it a little easier for the religiously inclined to invest their money carefully. Faith funds in Canada are still in their infancy, but interest is growing and new funds are developing.
Religious funds choose investments based on what is deemed sinful by a particular religion.
Geared towards a diverse range of popular religions there are special mutual funds for Muslims, Catholics, Mennonites and Orthodox Christians, to name a few. Canadians have been very interested in ethical investing, so I'd expect religious funds to take off in the same way. A fund with a lot of 'buzz' having been profiled by a series of big name media outlets like CNBC and CBS Marketwatch, its equity distinction makes it higher risk, but is noteworthy because it has decent mix of technology, financial and service stocks. Get all of the facts. Putting religious restrictions on mutual fund choices will severely limit your ability to create a well-rounded portfolio.