What’s a Shariah-compliant investment?

 

Islam as a religion does not discourage the pursuit of profit through legitimate economic activities, provided that these activities are within certain boundaries defined by Islamic law. In particular, the HSBC Shariah Supervisory Committee has approved investment in listed companies, provided that these companies are not engaged in activities that go against the tenets of Islam and provided any non-Shariah compliant revenue earned through investment in these companies is ‘purified’.

On an ongoing basis, the HSBC Shariah Supervisory Committee is called to certify that the activities of the Fund continue to abide by the guidelines set for acquiring, holding and disposing of investments.

Was this article helpful?

Please score it so we can improve and offer you more

LikeDislike
Loading...
Members