What is Shariah principle of investing? Are there funds that follow this principle of investing?
Imad Shah, Delhi
Shariah is the Islamic law which encourages trade and investment, but prohibit investments in companies engaged in the business of alcohol, gambling, pornography, abortion, human cloning, defence, conventional banks or insurers, most forms of entertainment and industries associated with pork. However, the biggest difficulty for devout Muslims is scouting for those stocks or funds that adhere to these principles which is where mutual funds investing on the Shariah law come in. Currently funds like Taurus Ethical, Tata Ethical and Reliance ETF Shariah BeES follow the Shariah principles, from which you could choose from.
