Christian Mutual Funds Legit?

Reagan asks what Dave thinks about so-called Christian mutual funds that do not invest in tobacco, alcohol or other questionable products.

QUESTION: Reagan asks what Dave thinks about so-called Christian mutual funds that do not invest in tobacco, alcohol or other questionable products.

ANSWER: The best fund so far in this type of mutual fund is the Timothy fund.  It has had good rates of return and some of the funds have a good track record of about six years.  However, I don’t purposefully look for mutual funds that avoid the so-called “sin stocks.” 

I’m not concerned about it because when you buy stock in a mutual fund company that has holdings in a company like Anheuser Busch, you are not giving a penny to Anheuser Busch.  You’re actually not harming or supporting any of these companies if you happen to have a mutual fund that invests in their stock. [If you buy directly from a store/company, you are helping them. A good analogy is buying a car. The first time it is sold, it's sold by the company and the company benefits. After that, the company never receives any more benefit from the sale of that same car.]

A mutual fund that has a couple “sin stocks” in it should not be a huge concern if you don’t agree with what they do. 

If you start boycotting companies you don’t agree with, you pretty much rule out even having a bank account.  I’m not sure that Christians are supposed to completely withdraw from the culture. You just have to balance that with good judgment.