Common Misconceptions about Faith-Based Investing with Brian Mumbert

Faith & Finance with Rob West

Faith-based investing has been around for decades, yet many investors still wrestle with an important question: Does aligning your investments with your values mean sacrificing performance or diversification? As more people seek to steward their resources in ways that reflect their convictions, it’s worth taking a closer look at what faith-based investing really is—and what it isn’t. On today’s show, Brian Mumbert, President of Timothy Plan—a pioneer in faith-based mutual funds—joined us to help clear up some of the most common misconceptions and offered a clearer picture of how values-driven investing really works.

00:0000:00

Show Notes

Faith-based investing has been around for decades, yet many investors still wrestle with an important question: Does aligning your investments with your values mean sacrificing performance or diversification?

As more people seek to steward their resources in ways that reflect their convictions, it’s worth taking a closer look at what faith-based investing really is—and what it isn’t.

On today’s show, Brian Mumbert, President of Timothy Plan—a pioneer in faith-based mutual funds—joined us to help clear up some of the most common misconceptions and offered a clearer picture of how values-driven investing really works.

What Is Faith-Based Investing?

At its core, faith-based investing seeks to align financial decisions with biblical values. This often involves screening out companies whose practices conflict with those convictions while still pursuing wise, disciplined investment strategies.

Despite its growing popularity, several misconceptions persist.

Misconception #1: “Faith-Based Funds Always Cost More”

One common assumption is that filtering companies based on values automatically leads to higher fees.

In reality, faith-based funds are managed much like traditional mutual funds. They involve professional research, portfolio management, and strategic allocation. In many cases, expense ratios are comparable—especially with the availability of lower-cost options like ETFs.

That said, there may be instances where costs are slightly higher. But as Brian Mumbert noted, many investors are willing to pay slightly more to ensure their investments reflect what they truly value.