We all have a financial journey, and depending on where you are in your financial investing journey, faith-based investing can mean different things to you.
Some people believe that religion and investing do not mix, and there is no judgment on this fact. However, many financial advisers may agree that faith and investing do mix, and it has its characteristics. Other types of investment philosophies and faith-based investing share an objective which is to maximize the investor’s returns, yet faith-based investors differ in choosing investment vehicles.
Faith-based investors choose investment vehicles based on their values, and the faith-financial -strategy is known as Values-Based-Investing. Yet Christians Investors practice Biblically Responsible Investing and align their portfolios to scriptural principles.
Biblically Responsible Investment Vehicles Help Christians Invest responsibly.
Today, available investment funds and companies screen out certain investments not aligned with Christian values. They cater to their clientele value-based financial needs and embrace biblical-responsible investing strategies.
Biblical Responsible Investing differs between different denominations and is as effective or ineffective as any other investment style. Its success depends on how much you know how the products and investment funds you purchase meet your needs, so you must do your research.
Before you begin to invest or trade, take time to figure out your investing strategies after assessing your financial situation and goals.
I highly encourage you to seek the expert advice of a financial adviser who is legally bound to act in your best interest.
Here are 4 Investment Strategies for Christian Professionals that fit most investors.
Value investing. This investment strategy focuses on stocks that trade for less than book value. Most value-focused investors are intentionally and careful when selecting underpriced yet know that stocks are being undervalued and underestimated by the market.
Growth investing. This investing strategy targets capital growth through growth stocks. Growth investors seek young or small companies and evaluate whether their earnings. After considerable earnings analysis, growth investors pick those whose earnings are expected to increase. They seek financial growth above-average rate, constantly comparing it to their industry sector or the overall market.
Momentum investing. This is a strategy and a system used to buy and sell low and high-return stocks or other securities. Momentum investors look for provided returns over the past three to twelve months. After identifying high return stocks, these are purchased, and those stocks that have proved to have poor returns over three months to twelve months are also sold.
Dollar-cost averaging or (DCA) is an investing strategy that seeks short-term profits. Dollar-cost averaging investors look to divide their investment dollars between multiple and sometimes diverse investment funds.
Remember to seek expert advice if you are planning to use these strategies, and don’t forget to do your own extensive research!
Essy Rodriguez, Membership Director at GodKulture