Investing with Principles: Understanding Shariah Compliant Funds
When you invest your funds, you have the option of doing so in a way that aligns with your own beliefs. For some, this will be an investment that is ethical. Shariah-compliant investments are one such investment. These are investments that adhere to Islamic law. They are not reserved for individuals of a single religion. Many ethical investors find them attractive too because they are about fairness and transparent business practices. The Core Principles Of Shariah Investing Shariah investing is based on a handful of principal rules. The very first one is to shun Riba. Riba is receiving money by charging interest. Thus, these investments do not use banks or finance companies that gain the majority of their revenue through interest. The second principle is shunning Masyir, which is gambling. This involves not investing in businesses that operate casinos or gambling. The third rule is to stay away from Gharar. This involves staying away from transactions that are uncertain or too ris...
