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.
Related News Articles
Union Budget: Property Sellers No Longer Eligible for Indexation Benefits
In a significant move, the Finance Minister has announced the removal of indexation benefits for property sellers, effective immediately. This change is expected to impact long-term capital gains tax rates.
Tax Disputes on the Rise: A Growing Concern for Taxpayers and the IT Department
The increasing number of tax disputes is causing trouble for both taxpayers and the IT department. Real estate companies, including mall builders, are expected to be impacted.
Maharashtra Election: BJP MLA Parag Shah's Wealth Surges 575% in 5 Years
Parag Shah, a prominent BJP MLA from Maharashtra, has seen his assets skyrocket to over ₹3300 crore. Known for his real estate empire, Shah's wealth growth over the past five years has raised eyebrows in the political and economic spheres.
The Power Behind BJP’s Triumph in Maharashtra: ‘Sajag Raho’
In the grand scheme of the BJP's historic win in Maharashtra, one crucial element outshines the rest: the ‘Sajag Raho’ initiative. This silent yet powerful force played a pivotal role in shaping the party's victory.
Sun Communities, Inc. (NYSE:SUI): Leading the Real Estate Investment Trust Sector
Sun Communities, Inc. (NYSE:SUI) has established itself as a prominent name in the real estate investment trust (REIT) sector, specializing in the management and development of manufactured home communities, recreational vehicle (RV) resorts, and marinas.
CREDAI-MCHI Expo 2025 Breaks Barriers: LGBTQ+ Homebuyers Enter India's Real Estate Market
The CREDAI-MCHI Property Expo 2025 is making waves in the real estate industry by welcoming LGBTQ+ homebuyers, marking a significant step towards inclusivity and equality in India's property market.