A Shariah screening process assesses investments against Islamic principles to determine whether they meet the requirements for Shariah compliance. On Behtari, users can explore mutual funds on the All Funds page and filter them by fund type: Conventional or Shariah.
Shariah screening typically involves evaluating the following:
Business Activities: An assessment of the activities of the companies a fund invests in. Businesses involved in activities such as conventional interest-based banking, alcohol, and gambling are generally excluded under Shariah investment principles.
Financial Screening: An evaluation of a company's financial position against applicable Shariah criteria. This may include examining interest-bearing debt and income generated from interest-based activities.
Shariah Oversight: Shariah-compliant funds typically operate under the guidance of a Shariah adviser or board, which assesses whether the fund's investments and practices comply with applicable Islamic principles.
Ongoing Compliance: A fund's investments and the financial position of its underlying companies can change over time. Periodic reviews help ensure continued compliance with the applicable Shariah guidelines.
On Behtari, you can use the Fund Type filter on the All Funds page to find funds categorised as Shariah or explore Conventional funds. Shariah-compliant funds follow an investment framework based on Islamic principles, while conventional funds do not necessarily apply these screening requirements.
Shariah compliance does not guarantee returns or eliminate investment risk. Before investing, review the fund's investment objective, risk profile, and official offering documents to understand its investment approach and Shariah compliance arrangements.