Dow Jones Islamic Fund
Imagine you wanted to buy a basket of things that are important to people who follow Islamic beliefs. One thing you might consider is the Dow Jones Islamic Fund. This is a collection of stocks, or pieces of ownership in companies, that are chosen based on certain guidelines that are in line with Islamic principles.
Now, what are these guidelines? Well, one of the key principles is not investing in industries that are considered haram, or forbidden in Islam. These include things like alcohol, gambling, and pork products. So, companies that sell alcohol or have a casino business would not be in this fund.
Another important principle is avoiding interest-based businesses, such as banks that lend money at a high interest rate. Islam encourages fair trade and prohibits unjust enrichment through interest. That's why companies that comply with these values are included in the Dow Jones Islamic Fund.
The fund is made up of a variety of companies from different industries, including technology, healthcare, and energy. Companies are chosen based on a screening process that ensures compliance with Islamic values. The fund also considers financial metrics, such as profitability and growth potential, to make sure it's a good investment.
In summary, the Dow Jones Islamic Fund is a collection of stocks that are chosen based on specific Islamic principles, including avoiding industries that are haram and interest-based businesses. It's a way for people who follow Islamic beliefs to invest in accordance with their values.
Now, what are these guidelines? Well, one of the key principles is not investing in industries that are considered haram, or forbidden in Islam. These include things like alcohol, gambling, and pork products. So, companies that sell alcohol or have a casino business would not be in this fund.
Another important principle is avoiding interest-based businesses, such as banks that lend money at a high interest rate. Islam encourages fair trade and prohibits unjust enrichment through interest. That's why companies that comply with these values are included in the Dow Jones Islamic Fund.
The fund is made up of a variety of companies from different industries, including technology, healthcare, and energy. Companies are chosen based on a screening process that ensures compliance with Islamic values. The fund also considers financial metrics, such as profitability and growth potential, to make sure it's a good investment.
In summary, the Dow Jones Islamic Fund is a collection of stocks that are chosen based on specific Islamic principles, including avoiding industries that are haram and interest-based businesses. It's a way for people who follow Islamic beliefs to invest in accordance with their values.