Socially responsible investors select investments based on a company’s contributions for the social good. Businesses that are involved in things like alcohol, tobacco, and weapons manufacturing are often avoided for companies that are good to the environment, practicing workplace diversity and increasing product quality and safety.

Morally responsible investing on the other hand, takes the “social good” aspect to new extremes as in faith based funds –mixing in an investor’s morals and religious beliefs. One such example is The Timothy Plan, a collection of mutual funds built on the basis of Christian ideology and principles.

“The Timothy Plan® family of funds are based on the biblical stewardship principles of I Timothy 5:8, 22. The Timothy Plan mutual funds screen out companies that are involved either directly or indirectly in abortion, pörnography, anti-family entertainment, alternative lifestyles, as well as those directly involved in the production of alcohol, tobacco or gambling.”

Investing with a religious agenda is not a new idea founded by Christians. In the Muslim culture, economics and investing is based on Sharia, the Islamic religious laws and is more complex than what Judeo Christians aim to achieve in their morally responsible investment strategy. In either case, balancing financial rewards in an investment and one’s religious beliefs may be a hard task to perform.

Is this strategy profitable? The average performances for The Timothy Plan family of funds for the past 5 years and 2007 year end results are less than the S&P 500. Subtracting maintenance fees for the funds and the returns are not very attractive.

It is good practice to be a conscientious and socially responsible investor by supporting companies that is beneficial to the social good of all. If one is looking to make a significant financial return on investments, it is probably a good idea to keep church and stocks separate just as the separation of state and church.

There may be not enough companies and corporations that fit the “moral” standards to build a winning portfolio with this strategy; after all, capitalism is built one of the 7 deadly sins –greed.

Individual investors have the ultimate decisions on putting money where they feel is right. If investing the morally responsible way is the strategy and the belief that spiritual rewards outweigh financial returns, then go for it. More praying will be needed to get this and other faith based funds to the next level –making enough returns to give tithe.

For additionally information on The Timothy Plan family of funds, visit www.timothyplan.com

HEADQUARTERS
The Timothy Plan
1055 Maitland Center Commons
Maitland, Florida 32751
(800) TIM PLAN

SHAREHOLDER SERVICES
The Timothy Plan
c/o Unified Fund Services, Inc.
Post Office Box 6110
Indianapolis, Indiana 46206-6110
(800) 662-0201