Shariah compliant child trust funds

[mahmed]

Asalamu alaikum,

I am trying to find out about any reliable child trust funds which are Shariah-compliant, are there any well-known ones available at the moment?

JazakAllah

[Zeeshan]

Walikum asslam,

Please search the forum for related discussion.

A thread below

Sharia Compliant Junior ISA

Assalamu alaikum, So i started looking at Junior ISAs for my son and came across the following in the https://thechildrensisa.com/ Now they have a Sharia Compliant option but looking at the T&C’s (https://thechildrensisa.com/wp-content/uploads/2019/08/TCI-TsCs-Document.pdf) they are charging 5% transaction charge compared to 1% for their “Low Cost Fund” and 2% for their “Actively Managed Fund”. Does this seem high for you? What alternatives have people found for their children’s long term inv…

Jazakallah
Zeeshan

[mahmed]

JazakAllah for sharing

[mahmed]

Having read this thread am still a bit confused. So it seems https://thechildrensisa.com/shariah/ isn’t highly recommended because of high transaction charge?

The range of investment options mentioned seems a bit complex and was looking for a simple approach- this is all new to me really.

[Zeeshan]

Salam @mahmed

You would have noticed from the threads that most of the providers are offering HSBC global equity index funds under various child schemes/brands/names etc. I guess in simple language when it comes to investment for children, it’s generally a small monthly contribution over the long term.

For smaller monthly contribution/pot size, Redrose will work better whereas for larger pots buying this fund via AJ should workout cheaper.

What sort of contribution roughly you are planning to make?

[mahmed]

Wasalaam am not really sure about the contribution but if it’s a requirement to have one for pension benefits, which would be a better option?