Mutual Funds

If you feel that investing in stocks is risky and not your domain but still wish to take part in the stock markets indirectly, then Mutual funds are the place to look for. Mutual funds are portfolios of stocks and/or bonds managed by experienced fund managers. They offer diversification, optimum returns and are regulated by governing bodies like SEBI.

A Shariah investor should look for equity-only funds, or equities and commodities, as bonds are non-shariah compliant due to the interest factor. The various equity fund types would be index funds, sector funds, growth funds, infrastructure funds etc.

The ‘assets under management’ (AUM) of the Global Islamic funds reached $58 billion as of 2010. The addressable investment universe for the Global Islamic fund managers is in excess of $500 billion and is growing by at least 10-15% annually*. The Islamic fund industry in India is still at a nascent stage and is bound to grow due to the low investor confidence towards U.S and Europe. Islamic funds are more popular than conventional funds in countries like Malaysia and Saudi Arabia.

Key differences between Islamic and conventional fund

*Source: E&Y

How can Wealthcity help me?

Wealthcity can help you to invest with some of the major shariah compliant mutual funds in India. Some of these Shariah funds have given more than 100% absolute return during various periods.