Thank you for your exchanges they are very constructive with @Musa_Absi
I wanted to know about these funds/indices what are the Islamic certification bodies?
I had a question about ratios?
What do they represent exactly?
Barka AllahouFikoum
I would like to take advantage of this opening to get information about HSBC Islamic Funds - HSBC Islamic Global Equity Index Fund
I wanted to know the difference between the different HSBC SICAVs:
HSBC Islamic Funds AC
HSBC Islamic Funds IC
HSBC Islamic Funds ID
Etc …
Barak AllahouFikoum
Assalam o alikum,
every fund issues different share class from time to time which could be different from the perspective of the fund charges (directed towards different types of investors) or they may be accumulating or dividend paying.
For HSBC fund,
IC = Accumulating share class denominated in USD
BD = Dividend paying/distribution shares class denominated in GBP.
Jazakallah
Zeeshan
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So which is better to invest in the HSBS IC fund or the BD fund? I also have a small amount of money to invest-around 3k- was looking to invest in the HSBC global fund-but now having read the above im even more confused-which fund would be better to invest in?
FYI - BC share class have been added to AJ bell’s list now
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Salams everyone,
I’ve been reading the threads and thank you to those who are sharing so much useful information - particularily @Zeeshan 
I am new to investing and wanted to ask if using AJ Bell and investing into HSBC Islamic Global Equity Index Fund BC GBP is still the best option. The reason I ask is that the forum posts are a while ago and wondered if the likes of Freetrade have come up with something more viable.
I would to invest £5k initially with around £200 per month into the accumulative fund.
Is the above still the best performing shariah compliant fund or has something else taken over now?
Thanks in advance
Mudasir
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Walikum as salam Mudasir,
Jazakallah for kind words and apologies for the late reply as I am not able to come to the forum regularly.
I am not aware of any recent change so believe that is the cheapest route available - I don’t think free apps such as freetrade/T212 offers mutual funds (HSBC fund) but they do ETFs (Ishares MSCI world index)
unfortunately, there is limited availability for Shariah funds with the above two being the most popular - my views in the thread above have not materially changed.
Good luck
Asalamu’ Alaykum Zeeshan and All,
Does anyone have any views on whether it is better to invest in a fund or to clone the fund and buy the shares direct (with the same allocation as the index)? Quite a tricky one to workout with all the different transaction costs to factor in plus have to factor in dividend purification.
Walikum as salam
Just wondering why would you want to do something manually and difficult from an admin and time perspective when it’s already available……you would not have the resources to keep your fund aligned to the main benchmark either. Think its just best to stick to ETF and fund.
If you have a preference of picking individual stocks than that would be a different thing but i guess its not worth the hassle to manually replicate an existing fund except if you are trying to replicate a non shariah compliant fund by only limiting to halal stocks in it?
Yes it’s closer to the second. The thinking is to loosely replicate the halal components of eg Fundsmith (a concentrated portfolio of c.25 stocks). The main advantages are potentially superior performance, lower fees as platforms cap fees at £120 (Interactive Investor) or £200 (Hargreaves Lansdowne) for individual holdings. The disadvantages are that the platforms charge 1% foreign exchange fees when buying and selling overseas stocks plus there is some hassle in monitoring and admin. Also would lose some risk diversification as would hold less than the 100 stocks in the Dow Jones Islamic Market Titans 100 Index.
Assalam aleikum,
Thank you for this very informative thread.
I am new in my investment journey and I thank Allah for guiding me to this forum.
I have a question regarding the MSCI World Islamic Index. Are the gains from this fund reinvested or distributed as dividends?
May Allah accept from you all and reward you in abundance. Amin.
Walikum as salam @Dr_Nusrat_Said
It’s a distributing fund. The below link will provide a live update of the ETF.
https://www.blackrock.com/uk/individual/products/251394/ishares-msci-world-islamic-ucits-etf
You may find below thread useful
Good luck.
Zeeshan
depends on how much time and risk appetite you have to actively manage a portfolio.
history has shown that ~85-90% of super-intelligent people aka active funds managers were not able to beat the market (i.e index) consistently over the long run.
How are you going to screen stocks and more importantly monitoring them? I use Islamicly app but the subscription will cost you a bit so consider that to the overall investment amount.
I personally like the core and satellite investment strategy where Core = bulk of your portfolio say 80-90% invested in a passive index fund and Satelite = 10-20% in stock picking to keep the things spiced up
Refer to video 6 in the link I shared in the above post to understand what I mean.
All the other points you mentioned are good points to consider.
Regards
Zeeshan
Yes very aware that active management has a poor record - especially this year with the S&P’s performance in recent years - even those active managers that do well are only probably lucky over a decade or so. In terms of screening I would only buy those that are in the HSBC fund for large caps or manually screen the few that would be outside the fund. I would probably end up index hugging alot. In terms of admin that can be reduced by adopting a buy and hold approach.
Many Thanks !
Jazaaka Llahu kheiran.
Salaam everyone,
I was hoping to get an up to date answer in 2023 about which ETF or index fund to invest in now that there are more available and the fees have changed. The ones I am curious about are:
- HSBC Islamic Global Equity Index BC GBP (fee of 0.62%)
- Ishares MSCI World Islamic ETF USD Dist GBP (fee of 0.3%)
- HSBC MSCI World Islamic ESG ETF USD ACC GBP (fee of 0.3%).
I am more interested in the HSBC global equity index due to higher proportion of US Tech Stocks which have done better but am unsure if the higher fee will have a heavy impact with long term regular investment?
Many thanks.
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@Zeeshan
Aww and jzk for this insightful post back in 21. Sorry I’m late to the party.
I was hoping to get an up to date on your thoughts about which ETF or index fund to invest in now that there are more available I. 2024 and the fees have changed.
Looking to do a DIY approach.
Alternatively if you could direct me to a more recent post or resource, I would greatly appreciate it
Salam @Yakub_Ismail
I have not been following any recent developments, can you share the list/names of the new ETF/Funds you are are referring and i will be happy to have a look.
