Friday, October 26, 2012

Shariah Baby Bond Child Trust Fund

Parents of Muslim children need a Child Trust Fund (CTF) that takes their beliefs into account. That’s why The Childrens Mutual has combined their expertise with the knowledge of a specially appointed Shariah Advisory Board to create the Shariah Baby Bond®, this is a Child Trust Fund account – which invests in a fund that only holds shares in companies that comply with Shariah law.

Shariah Baby Bond® Child Trust Fund is a stakeholder Child Trust Fund account. So it also includes all the government’s required features for stakeholder accounts, which are designed particularly for people with little or no experience of investment linked to company shares.

The minimum payment you can make into a CTF is £10. The maximum is £3,600 a year (birthday to birthday). The easiest way to make regular payments is by setting up a regular Direct Debit. You can also make one of payments by cheque or debit card.

The Childrens Mutual has greater potential for longer-term growth by linking investment to company shares Investment reflects a wide range of shares to spread risk A built in feature to limit the risk of losing value should share prices fall as your child's 18th birthday approaches Tax efficient investment growth and payout at 18 Charges are capped at 1.5% of the fund's value each year Designed to be entirely in keeping with Islamic law It's good news for Muslims as TCM does not make investment in companies involved with: tobacco pork liquor arms manufacturing non-Islamically structured banking; finance life insurance or interest-related activity cinema; and all media that could contain pornographic material such as broadcasting, videos; DVDs and CDs

Features include:


  1. Greater potential for longer-term growth by linking investment to company shares
  2. Investment reflects a range of shares to spread exposure to risk
  3. A built in feature to limit the effect of share prices falling in value as your child’s 18th birthday approaches
  4. Tax efficient investment growth and payout at 18
  5. Charges are capped at 1.5% of the fund’s value each year
 What’s more, Shariah Baby Bond® Child Trust Fund also offers:

  1. It is Designed to be entirely in keeping with Islamic law
  2. It’s quick and easy to set up and make contribution to build a nest EGG for your child
  3. You, your family and friends can top-up your child’s account online