Marble Capital Limited

Stability and Growth: The Role of Shari'ah Compliant Fixed Income Funds in Diversified Portfolios

In the dynamic world of finance, investors often navigate a complex landscape in search of stability and growth. Traditional fixed income funds have long been recognized for their role in providing a steady income stream and diversification benefits. However, for investors adhering to Islamic principles, Shari’ah compliant investment options offer a compelling alternative.

Among these alternatives, Shari’ah compliant fixed income funds have emerged as a cornerstone of stability and growth within diversified portfolios. Shari’ah compliant fixed income funds adhere to Islamic finance principles, which prohibit investments in certain industries such as alcohol, gambling, and pork-related products, and require adherence to ethical and moral standards. These funds invest in Shari’ah compliant sukuk and other permissible fixed income instruments, offering investors a way to generate income while remaining consistent with their religious beliefs.

According to a report by the Islamic Finance Development Report 2021, the global Islamic finance industry is estimated to have reached $2.88 trillion in assets in 2020, with Islamic funds representing a significant portion of this figure. Within the realm of Islamic finance, Shari’ah compliant fixed income funds have gained traction, attracting investors seeking stability and ethical investment options.

One of the key attributes of Shari’ah compliant fixed income funds is their focus on risk-sharing and asset-backed transactions, which align with Islamic principles. Sukuk, for example, are structured to provide investors with a share in the underlying asset or project, thereby mitigating credit risk and promoting transparency.

According to data from Thomson Reuters, the global sukuk market witnessed significant growth in recent years, with total issuance reaching $209.9 billion in 2020. This surge in sukuk issuance underscores the growing demand for Shari’ah compliant fixed income instruments among investors seeking stable returns within a compliant framework.

Moreover, Shari’ah compliant fixed income funds have demonstrated resilience during periods of market volatility, providing investors with a cushion against economic downturns. According to a study by the International Monetary Fund (IMF), Shari’ah compliant assets have exhibited lower volatility compared to conventional assets during times of market stress, highlighting their potential as a stabilizing force within diversified portfolios.

In Nigeria, the Marble Halal Fixed Income Fund (MHFIF) stands as a shining example of Shari’ah compliant fixed income funds, offering investors a unique avenue to align their investments with Islamic principles while aiming for stability and growth. Designed as an open-ended mutual fund, MHFIF caters to investors across the risk spectrum, particularly those with a conservative appetite who prioritize safety in their investment choices.

MHFIF boasts several key features that make it an attractive option for investors seeking stability and ethical investment opportunities. One of its primary benefits lies in its low-risk profile, providing investors with a sense of security amidst market fluctuations. With a focus on capital preservation, the fund aims to safeguard investors’ principal while generating competitive returns.

Crucially, MHFIF adheres strictly to Shari’ah principles, ensuring that all investments comply with Islamic ethical guidelines. This commitment to Shari’ah compliance appeals to investors seeking investments that align with their religious beliefs and ethical values.

Furthermore, MHFIF offers investors the flexibility of an open-ended structure, allowing for easy entry and exit from the fund. This accessibility enhances investor convenience, enabling individuals to manage their investments according to their financial goals and preferences.

In addition to its investment strategy, MHFIF emphasizes strong corporate governance, ensuring transparency and accountability in its operations. This commitment to robust governance practices instills confidence among investors, further solidifying the fund’s position as a trusted investment vehicle.

With a minimum subscription requirement of N10,000, MHFIF opens its doors to a broad range of investors, democratizing access to Shari’ah compliant fixed income opportunities. Investors can conveniently invest in the fund by downloading the Marble Invest app from the Google Play store or visit or invest through the Cowrywise