Unit Trust Funds
What are Shariah compliant unit trust funds?
Shariah compliant unit trust funds (or Shariah compliant mutual funds) are medium- to long-term investment products. They give investors the opportunity to diversify even a small investment in Shariah compliant equities, Sukuk, currencies and commodities in markets around the world. This is achieved by combining the funds of many investors into a pool of funds, which can be spread over a number of different investments and over a wide geographical area. This range of investments is called a portfolio.
The main objective of Shariah compliant unit trust funds is to provide an alternative avenue for investors to invest under Shariah requirements. A Shariah compliant unit trust fund will exclude investments in companies involved in non-Shariah compliant activities, such as products or services related to conventional banking, insurance and financial services, gambling, alcoholic beverages and non-halal food products. A Shariah compliant unit trust fund must follow a variety of rules, including investing only in Shariah-compliant companies, appointing a Shariah Board, carrying out an annual Shariah audit and purifying certain types of income prohibited by Shariah law, such as interest, by donating them to charity.
Other Unit Trust Funds FAQS
What's changing? What is EZInvest?
We've introduced a new unit trust investment tool in our HSBC Malaysia Mobile Banking app called EZInvest.
This is HSBC Malaysia’s first digital initiative that offers a simple, flexible, and competitively priced unit trust investment solution exclusively through our HSBC Malaysia Mobile Banking app.