Investing is no easy feat for investors following the Islam religion. It isn’t as easy as taking a top recommendation from a financial advisor. For an investment to align with Shariah laws, it must exhibit a plethora of qualities, including environmental and ethical considerations – and excluding interest and excessive debt.
Published data from the Kenya National Bureau of Statistics show that in 2019, over 10 percent of the Kenyan population are Muslims. This number is expected to grow over the years. As such, the demand for investment options for the members of the Kenyan Muslim community will continue to rise.
Fortunately, many companies offer professionally managed investment solutions that align with the Shariah principles and are certified Shariah-compliant by the Islamic body in Kenya. Ndovu Halal Fund is one such example.
Halal Funds: Considerations of Shariah-Aligned Investing
Generating good returns is always a priority for most funds that abide by the Shariah principles. Still, there are other considerations.
Islamic funds are required not to invest in companies that derive over 5 percent of their total income from pork products, pornography, alcohol sales, gambling, and other activities of companies prohibited by the Muslim faith.
Also, for any small income that is derived from non-compliant sources (such as interest, for instance), investors are required to purify this income by making an equivalent charitable donation.
This is why a Shariah board is usually appointed for annual auditing, and the report on the purification ratio is usually presented to investors.
Providing Options for Muslim Plan Members
Unlike their counterparts, Muslim investors have had limited options in regard to investment opportunities that align with their beliefs. Funds that invest using the Shariah approach can offer a solution to those looking to park their cash in investments that go in line with their religious or personal beliefs.
Nonetheless, of great significance is that these Shariah-compliant investment solutions provide an opportunity for all investors to diversify their portfolios and maximize their returns.
That’s one of the reasons Ndovu introduced the Ndovu Halal Fund as a solution for Muslims and anyone looking to invest in Islamic funds. Ndovu did so to help investors who have always had limited investment options have greater access to financial opportunities.
Ndovu listened to you and other stakeholders, who recognized this opportunity and saw its value to investors. With Ndovu Halal Funds, you can now invest in different instruments and government securities, among others.
With the Ndovu Halal Fund, you can build a diverse portfolio with broad equity and fixed income-like exposure and align your investment goals with your religious values. This fund creates significant opportunities for underserved and often-overlooked investors, especially the new entrants into the world of investing.
You are no longer limited to investments that do not meet your needs. Ndovu Halal funds make investing and saving for a goal more easily accessible to every able investor.