What is Shariah Compliant Fund?
Shariah or Shariat based investments are guided by the Islamic investment philosophy which invests in companies based on certain screening norms.
The fundamental principles followed are -
- Common Interest
- Sharing of profit & loss
- Public need
On a global scale, Shariah Investment is very popular and a common investment pattern. It contributes to a large sum of investment, worldwide.
To give you an idea -
- USD 65 bn invested in Shariah compliant investments
- USD 35 bn is in Equity Oriented Shariah Funds
- All prominent Banks worldwide have a Shariah Board
- Most of the prominent Stock Exchanges have a Shariah Board
- CAGR growth of 22%+ from 2003 to February 2009
Taurus Ethical Fund Investment Objective The investment objective of the scheme is to provide capital appreciation and income distribution to unitholders through investment in a diversified portfolio of equities, which are Shariah compliant. The scheme may also invest a certain portion of the corpus in money market instruments in order to meet liquidity requirements from time to time.
Guiding Infrastructure of Taurus Ethical Fund
- S&P CNX 500 Shariah will provide the initial Stock Universe
- This Universe will be further filtered by TASIS Shariah Board
- Independent Shariah Board will Certify the scheme
- Taurus Mutual Fund, Fund Manager will choose stocks from this filtered Universe
- Regular monitoring will be done by TASIS Shariah Board and quarterly renewal of Certificate to ensure constant Shariah Compliance
- Purification of Income will be adviced to investors by Taurus Mutual Fund
Investment Process For Taurus Ethical Fund
(I) Sector Based Screens: Business activities related to the following are excluded-Pork, Alcohol, Gambling, Financials, Advertising and Media (newspapers are allowed, sub-industries are analyzed individually), Pornography, Tobacco, Trading of gold and silver as cash on deferred basis etc..
During the selection process, each company’s audited annual report is reviewed to ensure that the company is not involved in any non-Shariah compliant activities.
(II) Financial Ratios Based Screens
- Leverage Compliance
- Receivables & Cash Compliance
- Revenue Share from Non-Compliant Activities
Two levels of filtering : First screening criteria is from S&P C&X 500 Shariah which is followed by more stringent Taqwaa Advisory and Shariah Investment Solutions (TASIS).
Minimum Application Amount during NFO
Rs. 5000/- and in multiple of Re. 1/- thereof
Choice of Investment
Investment Value Load
Upto any amount
1% upto 6 months
0.50% > 6 months to 1 year
Nil after 1 year
Systematic Investment Plan (SIP)
2.25% if redeemed within 1 year from the date of allotment - Applicable to each installment
Benchmark - S&P CNX 500 Shariah Index
- Growth Option
- Dividend Option - Dividend payout & Dividend Reinvestment Option
- Bomus Option
At least 80% in Equity & Equity related instruments and up to 20% in money market instruments.
About Taurus Mutual Fund
Amongst the first few private sector Mutual Funds registered with SEBI. Taurus Mutual Fund has a presence in over 20 cities across the country and continues to grow its reach extensively. HB Portfolio Limited is the present Sponsor, a well known player in the Indian Capital market. Under the astute leadership of veterans from the industry, Taurus Mutual Fund is ready to make a difference.
• Ahmedabad: 079-32521999, 9825100938 • Bangalore: 080-25580427/ 25580428 / 25595205, 9886925503
• Chandigarh: 0172-5024818 / 0172-5024838, 9815544712 • Chennai: 04439101571 / 72 / 73, 9940070914
• Cochin: 0484-3047227-231, 9995445175 • Delhi: 11-23321756-631/23717593, 9958802729 • Hyderabad: 040-30783060/61/ 62, 988595533 Jaipur: 0141-4038851/ 52, 9829218496 Jamshedpur: 9835160284 Kanpur: 9839022807 • Kolkata: 033-40036527/ 28/ 30 / 40030919, 983047732 • Lucknow: 0522-3040436/ 37/ 40, 9839807266 • Ludhiana: 9876691291 • Madurai: 0452-4230061, 9865365132 • Mumbai: 022-67534848 / 66242700 • Pune: 020-66215712 / 13, 9890609979 / 9881232246.
E-mail: firstname.lastname@example.org • www.taurusmutualfund.com
Sponsor: HB Portfolio Ltd.
Trustee: Taurus Investment Trust Company Ltd., Investment Manager: Taurus Asset Management Company Ltd.
Risk Factors: All investments in mutual funds and securities are subject to market risks and the NAV of the scheme may go up or down depending upon the factors and forces affecting the securities market. There can be no assurance that the scheme's investment objectives will be achieved. The past performance of the mutual fund is not indicative of the future performance of the schemes. The sponsor is not responsible or liable for any loss resulting from the operation of the
scheme beyond the initial contribution of Rs.2 Lacs made towards setting up of the mutual fund. Taurus Ethical Fund is only the name of the scheme and does not in any manner indicate the quality of the scheme, its future prospects and returns. There is no guarantee or assurance as to any returns on investments of the unit holders. All dividend distributions are subject to the investment performance of the scheme. The investment made by the scheme is subject to external risks on
transferring, pricing, trading volumes, settlement risks etc of securities. Please read the offer documents of the scheme carefully before investing.
"“S&P®” and “Standard and Poor’s®” are trademarks of the McGraw-hill Companies, Inc. (“S&P”), and have been licensed for use by India Index Services & Products Limited in connection with the S&P CNX Nifty
Shariah Index/ S&P CNX 500 Shariah Index. “The Product is not sponsored, endorsed, sold or promoted by India Index Services & Products Limited ("IISL") or Standard & Poor's, a division of The McGraw-Hill
Companies, Inc. ("S&P"). Neither IISL nor S&P makes any representation or warranty, express or implied, to the owners of the Product or any member of the public regarding the advisability of investing in securities generally or in the Product. Please read the full Disclaimers in relation to the S&P CNX Nifty Shariah Index/ S&P CNX 500 Shariah Index in the Offer Document / Prospectus / Information Statement."