Let's learn about the investment funds that adhere to Islamic religious tenets and Shariah regulations
20-Dec-2022 •Ashish Menon
Shariah compliant mutual funds are investment funds which are governed by the requirements of Shariah law and the principles of the Islamic religion. These Shariah mutual funds are considered a variant of socially responsible investing.
The Islamic law requires you to be ethically and socially responsible when it comes to investing your money. You must adhere to a certain set of rules if you want to invest in a way that is Shariah compliant.
The most commonly followed principles are as follows:
Shariah compliant mutual funds are those which follow the principles laid down by the Islamic law when it comes to investing. These funds invest only in companies which meet the required criteria for investing. At present, there are three shariah mutual funds in India available for investing, namely, Tata Ethical Fund, Taurus Ethical Fund and Nippon India ETF Nifty 50 Shariah BeES.