Ethical investing is a type of investing process that considers an investor’s personal principles – which could be social, moral, religious, political, or otherwise, before making investment decisions.
At ARM, the overarching focus remains to help everyone regardless of their beliefs or principles realise their ambitions – and so, to support anyone seeking to embark on ethical investing, the ARM Ethical Fund was specially designed.
What is the ARM Ethical Fund?
The ARM Ethical Fund is a mutual fund that invests in Sha’ria compliance securities to help investors invest in line with their religious morals or beliefs. This open-ended mutual fund with a flexible entry and exit scheme provides long-term capital growth as well as competitive returns amongst other benefits in a professionally managed investment scheme. It is ideal for investing towards medium to long-term goals due to its exposure to equities which is a volatile instrument.
What it invests in and who it is for
The ARM Ethical Fund invests in shares, real estate, fixed income, and other Islamic instruments.
The fund will not invest in any company that involves interest-bearing transactions, gambling, alcohol, and tobacco, arms and ammunition, or adult entertainment.
To ensure that the fund trades in line with Islamic principles, a Sha’ria advisory board chaired by influential Muslim individuals must approve of the investment portfolio before investments are carried out.
While the ARM Ethical Fund invests in Sharia compliance securities, it is open to every individual who is looking to protect his/her religious morals and beliefs.
Fund performance in the past five years
The ARM Ethical Fund has performed positively in the last five (5) years and the coronavirus pandemic in 2020 has also left the performance of the fund in the positive zone. Further to the long-term view of the funds, the current status of the stock market supports future growth.
3 benefits of the ARM Ethical Fund
Achieve long-term capital growth
Invest according to core Islamic values and beliefs
Open-ended which simply means that you can sell or buy into the Fund whenever they want.