What is the difference between a conventional and an Islamic Fund?
Islamic Fund is basically similar to the conventional fund in structure and operation except it complies with the Shariah rules and regulations. For an Islamic fund, it is prohibited to invest in the companies which are involved in haram activities such as gambling, alcoholic business, pornographic, ribawi institutions and the companies which financed by ribawi institutions. In addition, a screening criterion is applied for selection of securities which are not in the above prohibited categories.
