Shariah Compliance Mutual Funds in India
Many of my Muslim friends ask me that, Which are the Shariah Compliance Mutual Funds in India? Well, Shariah Compliance mutual funds are those which fulfills the Shariah Guidelines of Investment. Here are my 5 great articles on the various guidelines about Shariah Compliance mutual funds & Stocks.
Well, the Conclusion is that, You can not invest in 2 kind of mutual funds according to this guidelines.
01) Debt Mutual Funds – Because making earning from Interest Income is strictly prohibited in Islam.
02) Mutual Funds that Invest in Stocks of the following Companies.
- interest bearing financial institutions
- conventional insurance companies
Following Industries’ Stocks are Permitted -
- Oil & Gas
- Tele Communication
Remember: Out of 6000 BSE Listed Companies, 4,200 Listed Companies are Shariah Compliant.
Thus, You can invest in Sector Mutual Funds of any one of the above permitted sectors. You can not invest in Diversified mutual funds right now in India because they Include the stocks of Liquor, Pork, Hotels, Cinema, Interest Bearing Financial Instruments, Insurance Companies and other prohibited investments.
According to me, for the Indian Islamic Investors, Sector Mutual Funds are the best Investment Vehicles because they fulfill the Shariah Compliance.
You can learn more about Shariah Compliance Investments in the above articles.