SBI Mutual Fund, part of India’s largest public sector lender State Bank of India (SBI), will be launching a Shariah-compliant diversified equity fund next week.
The new equity fund will provide medium and long term capital gains to those Muslims who shun investing in interest-based and other business activities not approved by Shariah laws, which prohibit investing in companies dealing with businesses like alcohol and tobacco.
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The scheme that opens on December 1 and closes on December 15 before reopening on December 26 will have two plans, regular and direct with the minimum investment size of initial purchase amounting to INR5,000.
DP Singh, chief marketing officer of SBI Mutual Fund, told PTI, "We will be launching the SBI Shariah Equity Fund on December 1. The open-ended scheme will be a diversified equity fund, including large, mid and small cap companies. The stocks to be chosen for the fund will be from the Shariah-compliant firms, which number over 170 now."
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