What are Shariah funds?

Investing isn’t all about stats and figures on a spreadsheet, as it also raises some important moral and ethical questions that influence the way many people handle their finances.

The world of pensions is no different. Some investors put their ethical principles first when it comes to finding the right assets to finance, and sometimes, this is influenced by religion.

Shariah funds are a prime example of this. If you want to find out more about whether or not your own investments are compliant with Shariah law and what options are available to you when it comes to deciding what to do with your pension, our blog has the answers.

Shariah funds defined

Shariah funds are defined as investment funds that comply with the laws and values of Islam. Islam states that Muslims must be ethically responsible when it comes to investing, which is where Shariah funds come in.

Examples of Shariah investments

Shariah funds are actively managed funds that enable investors to place their money into dependable Shariah-compliant assets. The assets that are chosen must meet specific requirements to be viable investment targets.

For example, companies that offer certain products or services will be filtered out by Shariah funds, examples of which include:

• Alcohol and tobacco
• Pork
• Gambling
• Adult entertainment
• Conventional banking
• Non-halal food manufacturing and distribution

Generally, Shariah funds provide people with ethical investment opportunities in a range of areas, including healthcare, technology, real estate, aviation, and money market funds.

What we offer

iSIPP can offer you the chance to consolidate your pensions into an easily manageable pot. By combining your pensions, you can take control over where and when they are invested.

It’s your money, and we can provide you with space and freedom you need to manage it safely and effectively.

We understand that having to deal with multiple pension providers can be a real pain, especially when it comes to managing your investments.

Combining your pensions is a good way to avoid this issue and regain your agency. Our transparent and accessible money management platform can help you make the best decisions when it comes to your finances.

We offer you the chance to invest in an elite, actively managed Shariah fund from Schroders, a leading provider in the world of asset management.

Why Schroders?

Schroders expertly integrates multi-factor investing with Shariah law compliance, allowing customers to benefit from an incredibly diverse set of stocks.

The fund aims to offer ample investment opportunities to Shariah-compliant investors using their vast wealth of expertise and connections. Schroders recognise that Shariah-compliant investors are unserved in the market, and they seek to rectify this by offering Shariah investments in hundreds of stocks, all of which are screened by expert advisors.

Schroders have continued to adapt and evolve to meet the demands of the ever-changing markets, always putting their customers first and managing their assets responsibly.

Conclusion

Investing in your pension should never require you to sacrifice your values or your code of ethics, particularly when there are options out there to accommodate you.

If you’re unsure as to whether your current provider is investing responsibly, don’t hesitate to reach out and ask them for a detailed breakdown of your assets.

Shariah investments can be a wonderful way to grow your pension pot, allowing you to benefit from the joys of a financially comfortable retirement.

It’s your money, and you should be able to invest in a way that suits you best. If you want to consolidate your pension, start your journey with us here today.

Disclaimer 

The content of this article is for general information purposes only and should not be construed as legal, financial or taxation advice. You should not rely on the information contained in this article as legal, financial or taxation advice. The content of this article is based on information currently available to us, and the current laws in force in the UK. The content does not take account of individual circumstances and may not reflect recent changes in the law since the date it was created. It is essential that detailed financial and tax advice should be sought in both jurisdictions and any legal advice, if required.

This notice cannot disclose all the risks associated with the products we make available to you. When making your own investment decisions it is important you understand that all investments can fall as well as rise in value and it is possible you may get back less than what you have paid in. You should also be satisfied that any investments you choose are suitable for you in the light of your circumstances and financial position. You should seek financial advice if you are not sure of what’s best for your situation.