Looking for clean and ethical Investing? These Indian Funds Might Be the Answer
- Remin Francis I R
- Jun 27
- 2 min read
Have you ever found yourself wondering if your money is working in ways that reflect your personal values? In a world where investing is no longer just about returns, ethical investing has become more relevant than ever. One powerful approach within this space is Shariah-compliant investing, an investment style guided by Islamic principles but open to anyone looking to invest in a more responsible and value-aligned manner.
At its core, Shariah investing is about growing wealth while staying clear of activities that are considered harmful to society. That means no investments in alcohol, tobacco, gambling, or interest-based financial institutions. It also means putting your money into businesses that are productive, fair, and ethically sound. In a way, it’s investing with a conscience.
What makes this approach truly robust is the rigorous screening behind it. Every stock is carefully vetted, not just for what it does, but also for how it handles its money. Companies are filtered out if they rely too heavily on interest-based income or carry high levels of debt. This ensures that investors aren’t just avoiding questionable industries but also steering clear of risky financial structures.
In India, the National Stock Exchange (NSE) has taken this approach seriously. It has partnered with TASIS (Taqwaa Advisory and Shariah Investment Solutions), one of India’s leading Shariah advisory firms, to ensure that the filtering process is consistent, transparent, and based on well-defined principles. This isn't about vague "ethical labels"; it's a process rooted in accountability, backed by scholars and financial experts alike.
If you’re considering entering the ethical investing space, there are a few Shariah-compliant mutual funds and ETFs available in the Indian market. Tata Ethical Fund is one of the oldest and most trusted options, with a long performance track record and a large base of investors. Taurus Ethical Fund is another actively managed fund that follows the same guiding principles. Both aim to offer long-term growth while staying firmly within the ethical framework. For those who prefer a low-cost, passive route, there’s the Nippon India ETF Nifty 50 Shariah BeES, which tracks a curated index of Shariah-compliant companies.
Each of these options caters to a different type of investor, whether you’re looking for active management, cost-efficiency, or a blend of both. While returns may vary from fund to fund, what remains consistent is the philosophy behind them: to grow your wealth in a way that doesn’t compromise your values.
In the end, ethical investing isn’t just about avoiding the wrong; it’s about consciously choosing the right. Shariah-compliant funds offer a practical way to do that. As with any investment, it’s always a good idea to review your options carefully or speak with a financial advisor. But if you're someone who believes that money should follow morals, this is a meaningful path worth exploring. Research Assist: Krishna Priya (LinkedIn) Disclaimer: This content is for educational purposes only; please conduct your own research and consult with a qualified investment advisor before making any investment decisions.
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