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Shariah Compliant Mutual Funds

Here you get all Shariah-compliant mutual funds, also known as ethical funds. These funds adhere to Islamic finance principles by avoiding interest-based investments and businesses dealing with alcohol, gambling, or pork. Evaluating their performance, stock selection criteria, and compliance measures helps in choosing a suitable ethical investment option.

Top Funds with Shariah Guidelines

Name
NAV
AUM (in Cr.)
1M Returns
3M Returns
1 Yr Returns
3 Yr Returns
5 Yr Returnssort_arrow
Rating
Exp Ratio
Risk
Min Monthly SIP
Min Lumpsum
Category
Sub Category
Tata Ethical Fund Direct - Growth

Tata Ethical Fund Direct - Growth

413.61

2,980.72 6.33% -7.42% 3.59%10.55%24.10%

3

star
0.70%Very High1005,000EquitySectoral / Thematic
Taurus Ethical Fund Direct - Growth

Taurus Ethical Fund Direct - Growth

135.10

251.45 6.15% -6.93% 3.63%14.46%24.09%

3

star
0.56%Very High500500EquitySectoral / Thematic
Quantum Ethical Fund Direct - Growth

Quantum Ethical Fund Direct - Growth

9.31

44.96 5.23% -7.58% 0.00%0.00%0.00%NA0.74%Very High500500EquitySectoral / Thematic

Showing 3 of 3 results

Please Note:

  • 1M, 3M and 1 Yr returns are Absolute. 3 Yr and 5 Yr returns are Annualized.
  • Fund Rating is sourced from Morningstar.
  • "Exp Ratio" is a short-form used for "Expense Ratio" - In simple terms it is a fee charged by the AMC for managing your money.

*The schemes mentioned above are just for research purpose and not recommendations. Please do your own due diligence before investing.

Frequently Asked Questions

When selecting Shariah-compliant mutual funds, evaluate the fund’s adherence to Islamic finance principles, including restrictions on interest-based earnings and prohibited industries. Consider asset allocation, expense ratio, past performance, and fund manager expertise. Reviewing the fund’s screening process for Shariah compliance ensures alignment with ethical investing preferences.
Shariah-compliant funds offer an ethical investment approach by avoiding interest-based financial instruments and businesses in industries like gambling, alcohol, and tobacco. These funds provide an opportunity for investors seeking faith-based financial planning while still participating in equity markets. They promote socially responsible investing while maintaining a disciplined investment framework.
These funds align with ethical investment principles, ensuring that capital is deployed in businesses that meet strict moral criteria. They offer diversification across sectors like technology, healthcare, and consumer goods while excluding interest-based financial institutions. Investors benefit from transparency and socially responsible investing without compromising long-term financial growth potential.
Shariah-compliant funds may have limited diversification due to restrictions on financial and heavily leveraged sectors. Market fluctuations can still impact returns, and exclusion from certain industries may result in missed growth opportunities. Additionally, adherence to ethical guidelines may lead to lower liquidity in some cases compared to conventional funds.
Investors seeking ethical investment options that align with Islamic finance principles may find these funds suitable. They are ideal for those who prioritize socially responsible investing while still aiming for capital appreciation. Anyone looking for a structured investment approach that excludes interest-based earnings and restricted industries can consider them.
Find Shariah-compliant mutual funds on Dhan and analyze them based on ethical investment principles, portfolio composition, and expense ratios. A SIP ensures systematic participation while adhering to Islamic finance principles, whereas a lump sum investment provides immediate exposure to compliant companies that meet Shariah screening criteria.

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*All securities mentioned on this website are exemplary and not recommendatory.

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