Russia: First Shariah – compliant fund to launch in Russia

Click here: IINA – First Shariah – compliant fund to launch in Russia

Russian Muslims will soon be able to invest in financial instruments approved by their faith with the launch of the first Russian Shariah-compliant fund, Russia Today reported on Tuesday. “In our fund, as in other Islamic investment instruments, there will be no products with fixed income or any kind of bonds or credit products,” said Vladimir Solodukhin, the head of Asset Management in the new fund. Overseen by a Muslim non-commercial body, the Halal Fund of the brokerage company Broker Credit Service (BCS) will not acquire shares in companies which produce or sell alcohol or pork, or in media outlets that handles pornography and lifestyles that does not go in accordance with Islamic values.

The fund, which has been registered by Russia’s Federal Financial Markets Service, will also ensure that investment does not use loan funds or the collection and payment interests. “We will invest into companies’ shares,” said Solodukhin. “Investors will be sharing the profit of the company by getting dividends, which is absolutely in line with Sharia guidelines….BCS, a leader in domestic Russian stocks, expects the fund to attract over $ 40 million. Currently, 10 percent of Russia’s 500,000 mutual fund investors are Muslims.

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