In Bangladesh, most households generally have only one bread earner. Imagine how a family manages after the demise of that person who had the responsibility of meeting all the financial needs. If not planned well, no amount of savings can either give financial security or even comfort a family having a moderate number of members. Often, in a situation like such, a practicing Muslim gets caught in a dilemma on how to protect the wealth at first and then make it grow.
Those who keep their money in conventional banks have the option to earn interest on their savings and compound that to fight against inflation. A practicing Muslim saver, however, often gives away the interest earned and pays taxes, keeping only the amount deposited. So, over a long period of time, that savings will lose value year after year if that person continues to give away all the earned interests. Let’s do simple math- if we consider average inflation of 6% and if a person does not have any protection or plan in place on how to fight against that inflation, after 10 years, that person will eventually lose 40% of the value of his savings/wealth. When options are so limited for a general Muslim saver, investing in a Shariah-compliant open-end fund can be a great solution.
We, at UCB asset management, want to offer a platform for those Muslim savers that can help them achieve long-term financial plans by beating inflation, earning additional income, and growing assets at a favorable rate of return. And hence, we have launched our first Shariah-compliant open-end fund – UCB Taqwa Growth Fund.
How can a general investor benefit by investing in UCB Taqwa Growth Fund?
- All the stocks in the portfolio of this fund will follow regulations under Shariah law
- A professional fund manager will manage money to generate a consistent return in different market cycles
- Tax rebate on the investment
Even though most people find the opportunity to earn money, rarely do few learn the trick to keep that. If saving in a conventional way requires not earning a return on it because of religious reasons, the Shariah-compliant fund can be one of the best ways to grow money over time.
Being financially independent is a blessing and taking the right step in the right direction can only make that happen!