Halal Investing is an Islamic approach to investment decision making. Financial products are determined as permissible only after a detailed shari’ah-based review and approval.
Because Islamic financial law is centered on the concepts of social justice, ethics, and finance as a means to help build sustainable communities, in its essence, halal investing holds within itself the western concept of ethical and socially responsible investing, too. As a result, halal investing may be a preferred choice among Muslims and non-Muslims alike.
At its root, diversification primarily aims to limit the impact of volatility on your portfolio, which in turn may help maximize returns. When your portfolio is diversified, it holds securities across industries, sectors, and sizes.
Assume your portfolio only has travel industry stocks, as an example, including airlines, railways, tourism companies, travel agencies, etc. Due to an unexpected pandemic, vacationing and tourism is greatly impacted. In fact, even essential travel is reduced significantly. As a result, it is likely that all these stocks in the travel industry take a deep dive and experience losses. Although you had multiple companies in your portfolio, since they all belonged to the same/similar industry, they were similarly impacted by the same adverse events.
On the other hand, let’s say you had spread your investments across the travel, healthcare, and IT industries, with some domestic and some international stocks. In the event of the pandemic, although the travel industry stocks dropped, the healthcare and IT industry stocks rose during the pandemic due to the need for the products and services they provided. The impact of the dip in travel stocks was thus balanced out with the rise in the other types of stocks.
The Fund invests in foreign securities, which involve greater volatility and political, economic, and currency risks and differences in accounting methods. It is possible that the Islamic Shari’ah restrictions placed on investments and reflected in the main investment strategies may result in the Fund not performing as well as mutual funds not subject to such restrictions.
Past performance is not indicative of future results.
Diversification does not assure a profit or protect against a loss in a declining market.
The Fund is not available for sale to investors residing outside the United States.
The prospectus contains more complete information, including risks, fees, and expenses related to an ongoing investment in the Fund. You may also receive the prospectus or summary prospectus by calling (877) 417-6161. Please read the prospectus carefully before you invest or send money.
While the fund is no-load, management fees and other expenses still apply. Please refer to the prospectus for further details.
Allied Asset Advisors, LLC, an SEC registered investment advisor, is advisor to Iman Fund.
Iman Fund is distributed by Quasar Distributors, LLC.
The Iman FundAllied Asset Advisors, Inc.8925 S. Kostner AvenueHometown, IL 60456
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