It is not enough that the final product or industry looks permissible. The investment channel and the contractual terms used by the fund must both comply with Shari‘ah.
A fund therefore needs two levels of screening: what businesses it invests in, and how those investments are structured.
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Islamic Investment Funds: What Makes a Fund Shari‘ah-Compliant?
It is not enough that the final product or industry looks permissible. The investment channel and the contractual terms used by the fund must both comply with Shari‘ah.
A fund therefore needs two levels of screening: what businesses it invests in, and how those investments are structured.