IslamicFinance.de

Faith-based mutual funds typically screen out stocks of companies that violate the tenets of a given religion or religious denomination. In looking at faith-based funds, be aware that the stock-picking methods vary widely from fund to fund. And potential investors should avoid making assumptions about a fund’s screens or its stance on a moral issue based solely on its expressed religious affiliation. Faith-based funds will use positive and negative screens to focus their investment power on enterprises they deem worthwhile and financially sound. However, for the most part, the screens that faith-based funds use have a minimal impact on the overall stock choices available to them, and are therefore no excuse for poor fund performance over time.