List Of Shariah Compliant Mutual Funds In India

What is mean of the Shariah-compliant mutual fund?

Islamic law is known as Shariah, and Shariah prohibits interest for Muslims. 

So according to Shariah Muslims also not buy Shares of companies which linked to alcohol, tobacco, gambling and casinos and financial institutions that earn interest. 

BSE launch first Indian Shariah index in may 2013. 

Near about 700-800 companies of the indian stock market are Shariah compliant. 

So today I give you a list of Shariah-compliant mutual funds in India. 

List of Indian Mutual funds and ETF which compliant shariah

There are 2 running mutual fund, one upcoming mutual fund, and 1 ETF in India which name include Shariah but it fact sheet show that this ETF not compliant to Shariah  

1. Goldman Sachs CNX Nifty Shariah Index Exchange Traded Scheme (ETF):- (Not Recommended): - if you read the fact sheet of Goldman Sachs, it clearly states the fund is not Sharia Compliant in Page 8 from the fact sheet: "Investors to note that GS Shariah BeES is not a Shariah compliant scheme."
The link of this .pdf file:
http://www.benchmarkfunds.com/gs/Documents/Factsheet.pdf
The fact sheet is available on the top right corner from following web page.
Source URI:  http://www.goldmansachs.com/gsam/in/advisors/products/exchange-traded-funds/equity/shariah-bees/

2.Tata Ethical Fund 

3.Taurus Ethical Fund 

4.SBI Shariah Equity Fund ( will be launch in December 2014 ) SBI Shariah Equity Fund will be launch from 1 December 2014.

SBI Shariah Equity Fund has got the approval of the All India Muslim Personal Law Board, All India Muslim Personal Law Board is an authority which oversees the observance of Muslim civil laws in India.

Compare Shariah Mutual Funds and ETF in India: - We recommended Tata Ethical Fund (D) among all of these shariah compliant ETF and mutual funds due to largest corpus size and good dividend history. 

How To Become Rich Through Mutual Funds

Mutual funds are very easy tools of wealth creation in a period of time If you adopt a disciplined approach in mutual fund investing then you easily become rich in 10-20 year.

   Today I told you a tested method of wealth creation through mutual funds In this method you require one simple thing ‘’ SAVE 5% OF YOUR EARNINGS ‘’ it mean if your salary is 10000 per month then save only 5% of 10000 (500 rupees)in mutual fund SIP and increase this amount if your salary is increase. 

For example you start a SIP from 500 rupees per month and after 1 year your salary is 12000 rupees then your 5% saving is of 12000 means 600. 

So now increase your monthly SIP amount from 500 to 600 rupees per month. I think saving only 5 % from income is a very easy task it means if you earn 100 rupee then save 5 rupee and spent 95 rupee in your lifestyle maintenance. 

Now I give you a detail illustration that Mr shiv some Sharma was start his job in July 1996 in sale tax department as a clerk and that time his salary was INR 2500 per month. he start save only 5% amount of his salary ( it is INR 125 per month) so he make a SIP in SBI magnum multiplier lius plan 1993 ( this is a real story which inspire me to write this article). 

Now in 2014 he is a accountant and get 31000 per month salary so his salary in increase@15% per annum. He continue save 5% of his salary and invest this amount in above mutual fund scheme (in last of this article I give you a excel file where I show a estimated illustration.). 

SBI magnum multiplier plus give 21.24% annualized return on SIP investment if we divided it from 12 then monthly growth rate is 1.77% Now total value of his holding in near 7 lacks . Since last 18 year of his saving whenever he need money he take it as a loan from his own bank ( Yes he say this is my saving is my bank which give me interest free loan) In September 2004 he want to buy a bike and his holding cost is near 50,000 in September 2004 he sell some of his mutual fund units and get 30,000 ( in 2004 market price of a good bike is 30,000) for his bike. 

Now he assume that he take a interest free loan from his own bank he divided it in 60 installments 30000/60=500 per month now he add additional 500 in his monthly SIP amount means 5 % of his salary + 500 bike loan repaying amount. When he repay his bike loan from his mutual fund saving in September 2009 he again get a loan of 150000 from his saving and buy a residential plot from this 150000 and as I told you earlier he divided this 150000 from 60 as his loan installment 150000/60=2500 per month and repay this 150000 in 60 installments of INR 2500. 

Now his fund value is near 7 lacks and he plan to buy a Maruti swift car from taking a loan of 7 lacks from his own bank of this saving. 

It is also interesting to knew that market value of his residential plot is increase from 150000 to 10,00,000 in last 5 year which he buy from his mutual fund saving.

Here is the link for download estimated investment of shiv som sharma.

https://drive.google.com/file/d/0BwqVx444SxLaR0JhNGpzMDZTUjA/view?usp=sharing

PARAG PARIKH LONG TERM VALUE FUND : POSITIVE

Greetings Sir, I am a follower of your tips and  I wanted  to invest in Parag Parikh Mutual fund , Kindly assist me sir. I am 27 years old and i am planning for my savings ie long term 10 years span. 

Ask by muffi 

1.Mr. Parag Parikh is setup a mutual fund scheme in Oct-10-2012 and within 2 year PPFAS Long Term Value Fund - Direct Plan (G) get AUM of 478.90 cr. This is great. 2.Actually Parag Parikh is a value investor and many of small investors already impressed with theory of Parag Parikh so when he launch a mutual fund scheme then investor happy to invest with his fund. 

3. PARAG PARIKH FINANCIAL ADVISORY SERVICES LIMITED launch only single scheme so this is an easy confusion less mutual fund scheme for small but long term investors. 

4. Parag Parikh Mutual fund performance would be benchmarked against the CNX 500. 

5. Currently, PARAG PARIKH FINANCIAL ADVISORY SERVICES LIMITED offers only the Growth Option in a single scheme name "PPFAS Long Term Value Fund - Direct Plan (G)" 

6. NAV of PPFAS Long Term Value Fund - Direct Plan (G) is 14.577 and scheme give 42.3% return in one year. 

7. ICICI direct still not provide investment option in parag parikh mutual fund scheme. 

8. Overall my view is positive for PPFAS Long Term Value Fund - Direct Plan (G)

9. I have no any unit of Parag Parikh Long Term Value Fund.

Top 3 ELSS Mutual Funds In India

These days I receive many e mails from my followers about best ELSS in India.
In our Union budget 2014 Tax Rebate on 80 G is Raise from 1 lak to 1.5 lak per year so this is best time to invest 40,000 to 60,000 Annually in ELSS for tax rebate or long term equity benefits.
So in this article I tell you top 3 ELSS funds in India.

In my theory make a 1000-1000 rupees per month SIP in each of these ELSS for a wide divercified ELSS portfolio.
If You Follow my method of ELSS investing then:-

• Your investment is diversified in  3 largest Indian ELSS , because If you read my book then you may knew that I always recommended mutual fund  scheme with largest corpus size.
• All of my mutual fund holdings are in Dividend fund because In ELSS there are a 3 year lock in period for units but you may enjoy dividends from first year.
• So when you invest in all of these 3 top equity linked saving schemes in India and each fund declare dividend once a year then you may enjoy 3 dividends per year in your lock in period.

So here are the list of top 3 ELSS funds 2014-2015
1.SBI Magnum Tax Gain Scheme (D):- This is my all time favorite ELSS, Because this fund is still largest corpus size in ELSS group and wide dividend paying history since last 10 year this fund pay 2.70 to 15 rupee per unit dividend (per year) So I will make a INR 1000  per month SIP in this fund for tax gain and tax free dividends+long term capital gain. 
2.HDFC Tax Saver (D):-This fund is second largest corpus size in ELSS group and wide dividend paying history since last 18 year this fund pay 2.00 to 8 rupee per unit dividend (per year) So I will make a INR1000 to 2000 per month SIP in this fund for tax gain and tax free dividends+long term capital gain. 
3.ICICI Prudential Tax Plan (D):- Third largest AUM and since last 11 year pay 1.2 Rupee to 5 rupee dividend per unit per year.
Choose dividend reinvestment instead of dividend payout for reason read this article:-
Which is best in dividend payout and dividend reinvestment?

Real Estate Investment Trusts (REITs) In India

What is REIT ( Define REIT)

REIT means Real Estate Investment Trusts, these trust works like a company which invest directly in land, house property, commercial property and other real estate.

The REIT was designed to provide a real estate investment fund just like a mutual funds. 

How REIT Work:-REIT is  like a mutual fund which invest in property and REIT unit holder get benefits like a partner of landholder

Difference in Mutual funds and REIT 

REIT funds provide direct investment in property Mutual funds provide for investment in stocks. 

Benefits of REIT funds. 

REITs are just like of mutual funds they collect money from investors and invest this money in property. If anyone want to invest in property then he/she require a higher amount but he/she can enjoy same benefits by buying REIT units in just INR 10 only. 

(REITs) In India. 

In union budget of 2014 Indian Government decided to start REIT in India.

This will attract foreign investment in Indian real estate sector and give a chance to every middle class Indian family to invest in property field.  This is the reason that why I am so bullish on realty sector stocks read my sharegenius blog or fundamental Indian stocks website for more details

The Securities and Exchange Board of India (SEBI) approved the setting up of real estate investment trusts (REITs), 

Indian REITs will be allowed to invest only in commercial properties.

SEBI  also approved allowing infrastructure investment trusts IIT (infrastructure investment trusts) is a REIT-like structure that would allow developers to monetize their infrastructure assets through  stock exchange listing. 

Top REITs in India:- Real Estate Investment Trusts not start in India yet they only get SEBI approval and may start in November 2014 to January 2015