Halal Fund, Regulatory Requirements and Its Benefits to Investors
As Islamic Finance evolves in frontier markets like Nigeria, investors whether retail or institutional are interestingly showing interest in Shariah-Compliant funds because of the ethical nature guiding them.
This edition of the Islamic Finance Weekly anchored by Bukola Akinyele-Yisau features the CEO of HalalVest Limited Mr. Oguntoyinbo AbdulAzeez as he provide insight on ethical Investment, issues and its benefits to investors.
Halal is an Arabic word that relates to transactions that are lawful or permissible. While Halal Fund are funds that are managed in a shariah compliant way throughout the entire life cycle in product development, collective investment and returns.
Any individual can invest in Halal Fund, whether Muslim or non-Muslim but the processes must be done by Islamic Finance professionals and Shariah Advisory Scholars".
To operate an ethical Halal Fund, there is need for an advisory council of experts pertaining to Islamic scholars. The process must be clear and align with ethical financial principles, as investors are required to comply with Islamic principles, concerning the ownership of assets and risk sharing in order to ensure that the funds are managed ethically.