HSBC Islamic Funds - HSBC Islamic Global Equity Index Fund IC

Seen impressive growth since inception

I’ve not come across this before. Has anyone been putting money into it?

https://markets.ft.com/data/funds/tearsheet/summary?s=lu1092475968:gbp

The graph says it all

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I don’t think I’ll be putting my money in that.

It’s an option at my work to pay our pension into, risky but have had tremendous results in just a few years.

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What kind of results? A rough estimate?

Nearly 50% up since I switched to it about 3 years ago. Wish I could’ve switched earlier but it wasn’t available to me then. Before that I was maybe doing 1-5% a year.

Out of all the pension funds available to me this is probably the highest risk and least diverse, very tech heavy. But I’m young I can take a hit all the way to near zero if the world collapses…

Excuse my ignorance… but what is the difference in an “Islamic” ETF. All business is based on interest which is considered usury and thus is haram. So how does this ETF stay Islamic?

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Hear hear.

The companies the ETF invests in are supposedly screened/vetted so as to comply with Shariah principles. How that happens I’m not sure.

They hold 6% of Apple in a lot of their other Islamic ETF’s can’t find info on this. Apple!!! Hahahaha too funny. This seems like a selling point to just to get Muslims on board. HSBC are a questionable company at best given their history. If it we’re a sharia compliant banks ETF I would get that. This I’m sorry is nonsense

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Whatever it is, it doesn’t sit comfortable with me.

Agreed you’ve to pay a 5.54% upfront fee as well. Shady written all over this

I generally avoid HSBC-managed funds as a matter of course.

Ye with their money laundering history aswell, wouldn’t touch them with a barge pole. 5.54% front end is an absolute joke as well. I pity the fool

If you buy it on a stock exchange, there is never an upfront payment to be made.

Would FT have to pay them a small fee or how does that work? Wouldn’t everyone just do that then? The fact they have a fee at all on the front end is ridiculous.

No. Just the fees for running the fund.
Yeah, haha. You’d think so, right? Every product sold by banks or insurances costs upfront fees that end up in their own pockets. But you could have bought it for free on an exchange if you have a broker e.g. freetrade.
That’s why being financially literate even to a small degree can save you loads of money in the long run.

Absolutely. I didn’t take us long anyway so we must be literate :joy:

There are a few layers to determing which businesses are ok to invest in from an islamic perspective. First the business should earn the vast majority of its income by ethical/Islamically compliant means, i.e. is not involved in gambling, tobacco, pornography etc. Next, the business must have healthy balance sheet such that debt-to-asset ratio is not greater than 30%. And if there is any earnings from interest it cannot be more than 5%. It just so happens that the majority of business listed in the DOW and the FTSE 100 that comply with this criteria are tech companies, but you will see the likes of consumer goods and pharmaceuticals up there also.