Socially responsible or Shariah compliant? Which creates more value for investors in equity funds?
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The mutual fund industry observed a remarkable growth of two distinct types of mutual funds during the last two decades, namely, Shariah-compliant funds (SCFs) and Socially responsible funds (SRFs). These alternative investment avenues were created for investors who are keen on investments that are Shariah-compliant and have better ethical standards than conventional funds. To fulfil these needs, the funds' investment strategies incorporate specific non-financial screening criteria based on ethical and religious guidelines, besides the typical risk-return financial screening.
Social responsible , Shariah compliant , Equity funds
Naeem Azmi, Choudhary Wajahat and Ramadili Mohd, Shamsher Mohamad. (2016). Socially responsible or Shariah compliant? Which creates more value for investors in equity funds? CIAWM Bulletin, 2 (2016), pp. 21-24.