How halal are islamic funds?

I am seeing a lot of halal funds being set up by the big banks and other no Muslim led organisations saying the companies in these funds are sharia compliant but often this only includes what the business sells not the accounting practices of the firm so you could end up with a highly indebted firm that sells halal products.

Wa alaykum salaam,

Such funds should have a Sharia board. Without a Sharia board and Sharia governance, the halal status is questionable to say the least.

Allah knows best

The islamic funds I’m talking about have sharia boards but I know that the companies within them have debt. The question is how is the 33% debt to equity ratio halal if the company has debt since they’ll be interest bearing?