An introductory overview of Sharia investments

By Hong Kok Cheong

The importance for all investment managers to understand the rules of Sharia investments has become more apparent. Sharia funds are expected to grow significantly within the next twelve months. Over the past few months, we have introduced a four-blog series to help industry professionals understand Sharia investments. If you missed any of these blogs or want a refresher on the topic, we have gathered them below.

Examining the fundamentals of Islamic investment funds – February 8, 2017

With Sharia funds expected to grow significantly over the next twelve months, investment managers must understand the rules of Sharia investments to ensure success. In this first of a 4-part blog series that examines the fundamentals of investing under Sharia rules, we take a close look at Islamic investment funds. Continue reading…

In some cases, equity shares admissible under Sharia rules – March 3, 2017

Does Sharia law allow dealings in equity shares? As an investor, it’s sometimes difficult to know. In fact, dealing in equity shares is acceptable under Sharia law with the following conditions: Continue reading…

Sharia rules: Is purification necessary? – March 27, 2017

When profits in an Islamic equity fund are earned through dividends, a corresponding proportion of interest earned by the company must be given in charity. This is known as purification. Continue reading…

Scholars interpret some Sharia laws differently when investing – April 18, 2017

With equity funds, investments are made in the shares of joint stock companies. Profits come from capital gains or dividends. If a company’s main business is unlawful according to Sharia, an Islamic fund cannot purchase, hold, or sell its shares. Continue reading…

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