Kashmiris Embrace Halal Mutual Funds Amid Gold and Real Estate Challenges
As gold and real estate investments become increasingly unaffordable, Kashmiris are turning to Shariah-compliant mutual funds to grow their wealth while adhering to Islamic principles.
Halal Mutual FundsIslamic FinanceShariahcompliantGold InvestmentReal EstateReal EstateJul 30, 2025
Aamir, like a growing number of Kashmiris, is now looking toward Shariah-compliant investments — specifically Halal mutual funds that align with Islamic principles. These funds avoid businesses involving alcohol, gambling, interest-based banking, and other activities considered haram in Islam. “I want to grow my money, but not at the cost of compromising my faith,” he said.
Irshad Mushtaq, a noted financial expert, noted that gradually, people, especially the youth, are getting inclined towards investment in funds while following Shariah. “Earlier, it was alien to our society. Now people come and show their interest in the Shariah-compliant mutual funds. The reasons could be that gold and real estate are going through a bad phase. On top of it, mutual funds require a smaller investment with good returns,” he said.
Irshad noted that nearly 40 percent of mutual funds available in India are Shariah-compliant, and these funds are not only gaining traction in Kashmir but are already well-established across the globe. “Jains in India have followed ethical investing for decades,” he said. “In Europe, too, Shariah-compliant or socially responsible investing is a growing trend. It’s time people in Kashmir understood the value of investing the Halal way.”
He, however, said knowledge gaps remain a barrier in Kashmir. “We need more financial literacy. Many people still don’t know that investing doesn’t have to mean engaging in haram practices. Some options protect both your faith and your future,” Mushtaq emphasized.
Pertinently, Islamic finance offers a range of Shariah-compliant products. These include Mudarabah – a profit-sharing arrangement where one party provides the capital and the other contributes expertise, Musharakah – a joint venture in which both parties share profits, losses, and responsibilities equally, Murabaha – a cost-plus-profit model often used in asset financing, and Ijarah – leasing of assets for a fixed rental payment, Takaful – a cooperative form of Islamic insurance based on mutual assistance, Sukuk – Islamic bonds structured to generate returns without infringing on Shariah principles.
Globally, over 300 banks and 250 mutual funds operate under Islamic ethical and financial principles.
Frequently Asked Questions
What are Halal mutual funds?
Halal mutual funds are investment vehicles that adhere to Islamic principles, avoiding businesses involved in alcohol, gambling, interest-based banking, and other haram activities.
Why are Kashmiris turning to Halal mutual funds?
Kashmiris are turning to Halal mutual funds because gold and real estate investments have become increasingly unaffordable, and these funds offer a smaller initial investment with good returns.
What are some Shariah-compliant financial products?
Some Shariah-compliant financial products include Mudarabah (profit-sharing), Musharakah (joint venture), Murabaha (cost-plus-profit), Ijarah (leasing), Takaful (Islamic insurance), and Sukuk (Islamic bonds).
How prevalent are Shariah-compliant mutual funds in India?
Nearly 40 percent of mutual funds available in India are Shariah-compliant, and they are gaining traction among investors.
What are the main barriers to adopting Halal mutual funds in Kashmir?
The main barriers to adopting Halal mutual funds in Kashmir include knowledge gaps and a lack of financial literacy among the population.
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