There is one healthcare fund I would like to invest in but it is not marked shariah compliant. However, the top 10 holdings are all categorised as shariah compliant by Zoya except for United Health Group. The list is as follows:
1.Unitedhealth Group Inc 5.3%
2.Abbott Laboratories 4.9%
3.Thermo Fisher Scientific Inc 4.2%
4.Pfizer Inc 4.2%
5.Eli Lilly 4.0%
6.Sanofi Sa 3.5%
7.Johnson & Johnson 3.2%
8.Roche Holding Par Ag 3.0%
9.Medtronic Plc 2.9%
10.Boston Scientific Corp 2.4%
May I have your views on whether this is an acceptable fund to invest in?
There appears to be no specific shariah compliant funds for Healthcare from the portal I am using.
I think the question answers itself. With this mutual fund, you’d be investing in non-compliant companies. All positions are decisive and not just the top 10 positions.
It is very difficult to find a mutual fund or ETF that only contains Sharia compliant companies. However, there are a few who have Sharia boards:
The main difference between a conventional ETF and Islamic ETF is the benchmark index that the Islamic ETF tracks.
The Shari’ah supervisory board is an independent committee with an overwhelming power that makes the difference between Islamic and conventional mutual funds. The board establishes criteria for socially responsible or ethical investments by ensuring that the companies selected for investment are acceptable from the perspective of Shari’ah. This is carried out through a screening process to exclude stocks deemed unacceptable for investments, including alcoholic beverages and tobacco, gambling activities, pork, and arms manufacturing for other than defensive purposes. The screening process also avoids stocks which pay excess interest on debts. Companies that are not primarily involved with harem activities, but where such activities nevertheless constitute a significant proportion of their business, are also excluded.
I hope I could help you. Otherwise, looking at the community for keywords to your questions.