Common Misconceptions about Faith-Based Investing with Brian Mumbert

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. Misconception #2: “You Have to Sacrifice Performance” Another concern is that prioritizing values means settling for weaker returns. But values-based screening doesn’t replace sound investment analysis—it works alongside it. Professional managers still evaluate fundamentals, risks, and long-term opportunities. In fact, many faith-based funds have demonstrated competitive performance over time, and in some cases, have even outperformed their unscreened counterparts. As Mumbert explained, the goal is to combine wise stewardship with disciplined investing—not to choose between them. Misconception #3: “It Doesn’t Really Make an Impact” Some critics argue that faith-based investing lacks real-world impact since most stock transactions occur on the secondary market. While it’s true that buying and selling shares doesn’t directly fund companies in the same way as an initial public offering, investing still represents ownership—and ownership matters. Mumbert pointed out that shareholders have a voice. They can vote proxies, engage with companies, and choose not to profit from industries that conflict with their convictions. For many believers, that’s a meaningful form of stewardship. Misconception #4: “Screening Limits Diversification” A final concern is that excluding certain companies will significantly narrow investment options. In practice, even strict faith-based screens still leave a vast majority of the investable universe available—often around 90%. That means investors can still achieve broad diversification across sectors and asset classes while remaining aligned with their values. A Better Way to Think About Investing Faith-based investing isn’t about making a symbolic statement or checking a box. It’s about recognizing that every financial decision reflects what we value—and choosing to steward those decisions intentionally. It invites us to ask a deeper question: What does faithfulness look like in the way I invest what God has entrusted to me? You don’t have to choose between conviction and competence. Faith-based investing offers a way to pursue both—aligning your portfolio with your beliefs while still practicing wise, disciplined stewardship. Because in the end, investing isn’t just about returns—it’s about responsibility. Learn More If you’d like to explore faith-based investing options, Timothy Plan has been a trusted leader in this space for more than 30 years—offering mutual funds and ETFs designed to help investors align their portfolios with their biblical values. To learn more, visit TimothyPlan.com. On Today’s Program, Rob Answers Listener Questions: I’m confused about how to report an annuity on our taxes. We started it with $6,000 in 2011, and it’s now worth about $205,000. How do I determine the correct cost basis, especially with fees over time? We have $20,000 to invest and want something safe and fairly liquid. Should we use CDs or T-bills, and how do T-bills work through TreasuryDirect or a brokerage? My son’s business is struggling, and he’s relying on payday loans. How can he get out of this cycle, and who should he talk to for guidance or debt consolidation? Resources Mentioned: Faithful Steward: FaithFi’s Quarterly Magazine (Become a FaithFi Partner) Timothy Plan Fidelity | Charles Schwab Christian Credit Counselors Christian Community Credit Union | AdelFi TreasuryDirect.gov Our Ultimate Treasure: A 21-Day Journey to Faithful Stewardship by Rob West Wisdom Over Wealth: 12 Lessons from Ecclesiastes on Money Look At The Sparrows: A 21-Day Devotional on Financial Fear and Anxiety Rich Toward God: A Study on the Parable of the Rich Fool Find a Certified Kingdom Advisor (CKA) FaithFi App Remember, you can call in to ask your questions every workday at (800) 525-7000. Faith & Finance is also available on Moody Radio Network and American Family Radio. You can also visit FaithFi.com to connect with our online community and partner with us as we help more people live as faithful stewards of God’s resources. Hosted by Simplecast, an AdsWizz company. See pcm.adswizz.com for information about our collection and use of personal data for advertising.