Islamic Mutual Funds

Currently in Pakistan the largest private Asset Management Company with assets under management over  Rs. 25 billion is Al Meezan Investment which is a Islamic Asset Management company. This shows the type of trust people have over Islamic modes of investments in Pakistan . So why do people prefer Islamic mutual funds rather conventional mutual funds. Is it just because of its Halal investments or there is more to it.

For any mutual fund to succeed it is necessary that mutual fund is offering a better return because by the end of the day its all about Return on your Investments.It have been observed over the years that Islamic Finance have gained a lot of popularity in recent history ,because companies and countries which were following the Islamic structure were not severely hit by the recent financial crisis. 

In Pakistan Islamic modes of investments have also gained a lot of popularity ; one of the major reason stays the religious factor; but also Islamic companies have managed to generate better returns then the conventional funds. When the funds like NAFA were facing major problems Islamic funds were stable if not in very good conditions. 

Even now Islamic Asset management companies are providing the highest returns on the investments which are off course Halal, if compared to the industry on the whole. 

There are are currently 35 Islamic funds with the fund size of over Rs. 35 billion  

So why Islamic Funds:

There are tow reasons why you should go with Islamic Mutual Funds. 

1. Rate of return is comparatively high in the private sector.

2. Its Halal.