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Shariah compliant ETFs
- Thread starter aomar296
- Start date
lowriderza
Expert Member
There are a few ABSA and Old Mutual both have them.
touch_stone
Well-Known Member
Not that I know of in South Africa as I have been investigating this for a while. There seems to be a plethora of Asset Managers punting shariah compliant funds but with the usual costs attached
touch_stone
Well-Known Member
This is managed by Blackrock i.e. Offshore hence there may be further tax implications and costs
Islamic law does not allow a follower of the faith to benefit from items which are classified as Haraam
So that doesn't only mean what we consume, but also to the income earned.
A follower can't earn income from sale of alcohol or pork. Likewise, dealing in interest (earning or paying) is also prohibited, so investing in companies that have high interest exposure will not be permitted as your dividend or gains when you sell your share will be considered haraam. I found a link that explains it better than this if you more in tune with finance jargon than me
Guide to shariah compliant ETFs - what are your options? | Adam Fayed
How to buy Shariah Compliant ETFs
adamfayed.com
mozammil09
Active Member
- Joined
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The only one I could find locally is Absa Newfunds shariah top 40
So you can’t own shares in Malls, Airlines, Supermarket Groups, Fast Food Groups, Delivery/Courier Firms etc I would imagine? Since at some point they will either support or engage in handling and transport of pork or alcohol?Islamic law does not allow a follower of the faith to benefit from items which are classified as Haraam
So that doesn't only mean what we consume, but also to the income earned.
A follower can't earn income from sale of alcohol or pork. Likewise, dealing in interest (earning or paying) is also prohibited, so investing in companies that have high interest exposure will not be permitted as your dividend or gains when you sell your share will be considered haraam. I found a link that explains it better than this if you more in tune with finance jargon than me
Guide to shariah compliant ETFs - what are your options? | Adam Fayed
How to buy Shariah Compliant ETFs
Off topic, but who do you guys use to invest in Islamic Units Trusts and ETF's? Looking for a good platform.
I see EasyEquities does not offer UT, OM does with their painfull website, and then there is Coronation and Allan Gray.
Interested in Albaraka, Oasis and Kagiso
I see EasyEquities does not offer UT, OM does with their painfull website, and then there is Coronation and Allan Gray.
Interested in Albaraka, Oasis and Kagiso