Table Of Content
- Our Investment Strategy for Shariah Compliant Mutual Funds
- What do you invest in with Shariah Compliant Mutual Funds?
- Shariah Compliant Mutual Funds: Pros and Cons
- High Principles: Annualised past returns
- Who should invest in High Principles?
Quick Summary
Participate in India’s growth story in a socially responsible way. Invest in "High Principles" a mutual fund portfolio that adheres to the strict rules laid down under the Shariah Law.
The "High Principles" portfolio by Stack Wealth allows you to gain exposure to businesses that are a play on India’s secular growth story while strictly abiding by the rules laid down by the Shariah law.
Our Investment Strategy for Shariah Compliant Mutual Funds
This mutual fund portfolio primarily makes investments in businesses that adhere to the stringent Shariah Law regulations.
- Investors seeking a diversified stock portfolio without exposure to industries like banking and finance, alcohol, tobacco, etc. can choose this product.
- This fund is appropriate for people looking to invest in equity and equity-related securities of Shariah-compliant companies as well as those seeking long-term capital growth of their wealth.
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What do you invest in with Shariah Compliant Mutual Funds?
- Invest in a mutual fund portfolio of businesses that adhere to several crucial Shariah Law regulations.
- Mutual Funds that won't make investments in businesses whose interest income makes up more than 3% of overall revenue.
- Mutual Funds that won't put money into businesses whose total debt is more than one-fourth of their total assets.
- Mutual Funds that refrain from making investments in companies engaged in activities related to alcohol, tobacco, gambling, financial services (including banks and NBFCs), pork, gambling, nightclubs, or pornography.
Shariah Compliant Mutual Funds: Pros and Cons
Benefits
- Adequate diversification benefits
- Potential to generate attractive returns over the long term.
- Higher risk than usual.
Drawbacks
- There can be periods of underperformance.
- Higher risk than usual.
- Expense Ratio is higher than the category average.
High Principles: Annualised past returns
- The majority of infrastructure-focused funds have beaten benchmark indices over the last 1, 3, and 5 years. The Sensex and Nifty 50, which measure the performance of the 30 and 50 largest firms listed on the BSE and NSE, respectively, serve as the fund's benchmarks.
- This mutual fund portfolio has a very high-risk rating.
Want to know more?
Talk to our advisory team.
They will be happy to help you plan and manage your investments.
Talk to an expertWho should invest in High Principles?
Shariah-compliant funds may be of interest to investors with a lengthy investment horizon and a willingness to assume moderate to high risk. Generally speaking, investors who want to make long-term investments—at least five years—are best suited for these products. Investors should be prepared to assume extra risk in order to potentially earn higher returns because Shariah Compliant funds are more volatile than the average for their category.
- This is ideal for the age group of 18 years up to 50 years
- This is for investors who delve into aggressive risk investing
- Investment horizon of 5+ years
- You can expect long-term capital appreciation
- This is ideal for investors with the financial goals of saving in a Shariah-compliant manner.
FAQs
1. What are Shariah-compliant mutual funds?
Shariah-compliant mutual funds are investment options designed to align with Islamic principles. They avoid investments in activities considered "haram" (forbidden) like alcohol, gambling, and pork production. They also adhere to regulations on interest (riba) and debt. These funds cater to Muslim investors seeking ethical and religiously compliant investment avenues.
2. Who can invest in Shariah mutual funds in India?
While primarily aimed at Muslim investors, anyone can invest in Shariah-compliant mutual funds in India. They offer ethical investment options based on strong underlying assets, attracting investors seeking halal investments or socially responsible portfolios.
3. What are the benefits of investing in Shariah mutual funds?
Ethical investing: Align your investments with Islamic values and principles.
Diversification: Access a diverse portfolio of Shariah-approved companies across sectors.
Potential for competitive returns: Invest in well-managed funds with the potential for good returns.
Peace of mind: Invest knowing your money is not involved in prohibited activities.
4. How can I find and choose a Shariah mutual fund in India?
To start investing in a Shariah compliant mutual funds in India follow these steps:
1. Download the Stack Wealth app from the app store or play store.
2. Install the app and complete your KYC in 2 minutes.
3. Explore our "Opportunities" offering and start an SIP or make a one time investment in the "High Principles" portfolio. "High Principles" is an expert-curated mutual fund portfolio that invests in Shariah compliant mutual funds delivering the best risk-adjusted returns.
