Tata Ethical Fund

Tata Ethical Fund is an open ended equity fund which invests in a diversified equity portfolio based on principles of Shariah. The investment objective of the scheme is to provide medium to long-term capital gains by investing in Shariah compliant equity and equity-related instruments of well-researched value and growth-oriented companies.

The scheme was first launched in 1996 as Tata Core Sector Fund to address the needs of Muslims and Jain. The product was Shariah-friendly as investments were made on the basis of screening the activity in compliance with Shariah norms. 

Asset Allocation:  Up to 100% investment in equity & equity Shariah Complaint listed, to be listed and unlisted securities of companies and other instruments if allowed under Shariah principles 

Key Attributes 

  • Ideal for Investors who are keen to invest in companies which are from Shariah compliant universe of stocks
  • Investments in well-researched value and growth oriented companies from Shariah compliant sectors
  • Avoids investments in companies involved in activities like alcoholic beverages, gaming/casinos, non halal food products and conventional financial institutional based on Riba (interest)
  • Avoids companies with higher debt to equity ratios and thereby invests in low leverage companies
  • Purification of any prohibited income on yearly basis as advised by Shariah advisor.