Religious Funds Can Draw More than the Faithful

May 14, 2008


Source: Mail Tribune

Wire Service: AP

Moazzam Ahmed tried for years to square his investment goals with the tenets of Islam.

"There was a lot of research that I had to do on my own," he said, referring to the time he spent poring over potential investments to weed out objectionable businesses. "I probably still made mistakes."

Then, several years ago, he discovered a mutual fund company that complied with Shariah, or Islamic law, and soon rolled over his 401(k) to the funds. The funds prohibit investments in companies whose business focus on alcohol, tobacco, gambling, pornography or insurance.

Ahmed hadn't just found a family of funds that aligned with his religious principles, he'd discovered funds that produced strong returns and managed to sidestep the implosion of Enron Corp. and Worldcom Inc. as well as the more recent mortgage debacle.