Islamic Financial services has been around for a while but recently it has started a new comeback an interesting concept, slowly gaining momentum in the Indian mutual fund industry, is that mutual Fund houses are launching specific schemes catering to the Muslim community or anyone else interested in taking ethical financial products.
There are currently 3 Sharia compliant funds in the mutual fund space, one being a passively managed fund, while the other two funds are actively managed.
An observation of the AUM of these funds demonstrates that the ETF's corpus has actually witnessed a downward trend. If a closer look is taken at the total AUM of all equity diversified funds, it could be seen that the actively managed Sharia funds constitute only 0.11% of this total AUM. This clearly shows that the investors for whom this product is actually designed are not really aware about this offering.