Shariah-compliant funds

Shariah-compliant funds are investment funds governed by the requirements of Shariah law and the principles of the Muslim religion. Shariah-compliant funds are considered to be a type of socially responsible investing.

The main objective of Shariah-compliant investments is to provide an avenue for investors who are sensitive to Shariah requirements on their investments. A Shariah-compliant investment should be free from activities prohibited by Islam such as usury (riba), gambling (maisir) and ambiguity (gharar).

It should also exclude investments in companies or sectors primarily involved in Shariah non-compliant activities such as products or services related to conventional banking, conventional insurance, gambling, alcoholic beverages and non-halal food products.

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