Halal funds and platforms
Most beginners don’t need individual shares. Here’s how screened funds work, what they cost and where you hold them.
We haven’t published a side-by-side table of funds yet, because we won’t publish figures until they’re checked. Until then, this page explains what to compare.
What to compare
Who certifies the fund
A named shariah board or a recognised index methodology, in the fund documents.
The ongoing charge
A yearly percentage on the factsheet. It’s charged on your whole pot, every year.
Index or managed
Index funds track a screened list of companies and tend to cost less. Managed funds rely on someone’s judgement.
The platform
Where you hold the fund. Platforms charge their own fee and don’t all offer the same funds.
The wrapper
A stocks and shares ISA or a pension shelters growth from tax. Check which the platform offers.
What it leans towards
Screens remove banks and heavily indebted companies, so funds can lean towards large technology firms.
The details
Why two halal funds can hold different companies
Screens use different standards and limits, commonly around a third of market value or assets for debt.
Purification
Some funds work out the small part of income that may need giving away, and some leave it to you.
Falling markets
Compliance doesn’t protect you from a fall. The FSCS can step in if an authorised firm fails, but not because an investment dropped in value.
Capital at risk. Investments can fall as well as rise, and you could get back less than you put in. Past performance is no guide to the future. Nothing here is a recommendation to buy any fund or platform.