Investing in Mutual Funds

Salaam,

I am currently looking into investing in a mutual fund and I have been looking at the funds available in Hargreaves Lansdown.

One of the funds that I wanted to invest in has some holdings in companies that are considered non-compliant (Based on AAOIFI standards).

After performing a business screen for each of these non-complient companies I was able to calculate that the mutual fund as a whole had less than 5% non-shariah compliment revenue which according to AAOFI would make the fund compliant.

My question is should I class the whole fund as non-shariah compliment if one company is non-shariah compliment or am I correct is saying as long as the fund itself has less than 5% non-shariah compliance it should be compliment according to AAOFI

Kind regards,
Sayf Khan

Waslam

May Allah bless you.
My understanding is that, each company in the fund must pass the shariah compliance screening. Based on this, each one of them should have less than 5% of haram income.

And Allah knows best!