Social. Political. Economic. Career| Seyed Ibrahim

Serious issues & ideas. Trusted Sources.

Shariah-compliant Mutual Funds / ETF

with 2 comments

Feb 19, 2009: These are FYI, not recommendations. Just because a fund is Shariah-compliant does not mean it’s an excellent investment. I don’t invest in new funds. Only Tata Ethical Fund has some history, the other two are new.

Feb 18, 2011: Updated some contents. Taurus ethical fund’s performance is OK too. For SIP, they are insisting on 12 months, which i think is fine.

Aug 2015: I am not an expert in Islamic Fiqh. There are some who say investing in stocks (irrespective of the industry or the company’s activities/financials) is not halal. While I don’t agree with the reasoning, I am not issuing any fatwa suggesting it is Halal.

#1: India’s first ever Shariah-compliant ETF has finally hit the markets. Benchmark Mutual Fund has launched the Shariah Benchmark Exchange Traded Scheme, an open-ended ETF.  The fund will track the S&P CNX Nifty Shariah Index. Details:  http://www.benchmarkfunds.com/Products/ShariahBeES/Overview.aspx Minimum Amount: Rs 10,000

ETFs are a low cost investment choice for investors. The maximum expense ratio an ETF can charge is 1.5 per cent, compared to the 2.25 per cent charged by actively managed equity funds. But investors need a demat account to invest in ETFs.

#2: The first ever halal (halaal) mutual fund in India is Tata Select Equity Fund (Renamed to Tata Ethical Fund in Aug 2011). Its performance can be viewed at https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=16683 The Mutual Fund’s details are at http://www.tatamutualfund.com/our-funds/equity/diversified/tata-ethical-fund

#3: Taurus Ethical Fund is an Open Ended Equity Oriented Scheme that will invest in companies which are in compliance with the Shariah norms. The scheme will primarily invest in Equity and Equity related instruments

The corpus of the Scheme will be invested in the companies which are based on the principles of Shariah whereby, it is not permissible to acquire the shares of Companies providing financial services on interest like conventional banks, insurance companies or the companies involved in some other business not approved by Shariah, such as companies manufacturing, selling or offering liquors, meat, or involved in gambling, night club activities, pornography etc. The Fund Manager and his team will identify the stocks for investment from the stock universe available from S&P BSE 500 Shariah Index which is the benchmark index for this scheme. MF Link: http://www.taurusmutualfund.com/OurSchemes/taurus_ethical_fund.html

The Fund’s performance can be viewed at https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=10244

Short-URL: http://wp.me/pmMJ0-34

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2 Responses

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  1. I want to in funds according sharia, minimum amount by can I start

    shaikh sartaj sk Jakiroddin

    Feb 10, 2016 at 10:54 pm


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