Shariah-compliant mutual funds in Bangladesh
Shariah-compliant funds invest only in Islamically permissible ways, overseen by a Shariah board. Here is how they work and how to find them, with a one-tap filter on the calculator.
On this page
What makes a fund Shariah-compliant?
A Shariah-compliant fund follows Islamic finance principles. It avoids interest-based income (riba) and businesses considered non-permissible (haram), such as conventional banking, alcohol, gambling and tobacco. Investments are screened against Shariah criteria, and any incidental non-compliant income is typically purified by donating it to charity. The aim is to let observant Muslims invest in line with their faith.
How they work
Apart from the Shariah screening, a Shariah-compliant open-end fund works just like any other open-end fund: you buy and redeem units at a price based on net asset value (NAV), the manager runs a diversified portfolio, and you earn returns through unit-price growth and dividends. If open-end funds are new to you, the plain-language guide covers the basics.
Who oversees them
Each Shariah-compliant fund is supervised by a Shariah supervisory board: a panel of qualified scholars who review the fund's holdings and practices to confirm they stay compliant. This sits on top of the usual safeguards every Bangladeshi fund has, where a sponsor, asset manager, trustee and custodian are kept in separate hands, all under the Bangladesh Securities and Exchange Commission (BSEC).
How to find Shariah funds on ReturnKoto?
ReturnKoto? tags every Shariah-compliant fund and gives you a one-tap "Shariah-compliant only" filter on the calculator, so you can see returns for just those funds. You can also spot the Shariah tag while browsing the funds directory, and each Shariah fund has its own page with verified details.
Returns
Shariah-compliant funds are not automatically higher or lower returning than conventional ones; performance depends on the fund and the period. The fair way to judge is on real history. Turn on the Shariah filter and compare actual total returns over the period you care about, with dividends reinvested.
Choosing a Shariah fund
Look at the fund's track record and size, its verified management fee, and whether its risk profile (income, balanced or growth) matches your horizon. Then decide between a lump sum and a monthly SIP. Our how-to-invest guide walks through the full process.
Common questions
Are there halal mutual funds in Bangladesh?
Yes. Several open-end mutual funds in Bangladesh are Shariah-compliant, investing only in Islamically permissible ways under the oversight of a Shariah supervisory board. ReturnKoto? has a one-tap filter to show only these funds.
How is a Shariah-compliant fund different from a regular fund?
It applies Islamic screening: avoiding interest-based income and non-permissible businesses, with a Shariah board reviewing its holdings. Otherwise it works like any open-end fund, with units priced at NAV.
How do I find Shariah-compliant funds on ReturnKoto?
Turn on the 'Shariah-compliant only' filter on the calculator, or look for the Shariah tag in the funds directory. You can then compare their real historical returns.
Do Shariah funds give lower returns?
Not necessarily. Returns depend on the specific fund and the time period, not on whether it is Shariah-compliant. Compare actual history on ReturnKoto? with the Shariah filter on.