Ethical vs Shariah fund: Outweighing Benefits to Risk

Everyday Islamic Finance
#1

Asalaamu alaykum,

May Allah bless ypu all for assisting us!

I have looked into Pensions.

NestPensions offer an ethical and shariah compliant fund.

Ethical invests in what seems to be halal investments, however they do associate with interest.

The shariah fund has no interest, but the risk of investment is very high, and a risk of losing invenstment.

I have been advised to follow the ETHICAL fund as this is safer and Allah and His Messenger SAW, encourages us to follow easier paths.

However, I am not confident that the ethical fund is valid and worried I will be ‘waging war with Allah’.

Any suggestions?

Jzk

#2

Wasalam

May Allah bless you.

As you have mentioned, ethical funds are not necessary free from haram elements such as interest. For this reason it would not be permissible to invest in this sort of fund.
Islam encourages us to chose the easy paths within a halal framework which pleases our Lord only. There may be shariah funds with less risk, it might be worth looking into IFG Wealth: https://app.wealth.islamicfinanceguru.com/auth/login/

Kind regards