First Islam-friendly fund for children launched

THE first Child Trust Fund which complies with Muslim laws was launched today.

Children’s savings specialist the Children’s Mutual has created a fund that is in line with Islamic Shariah law for children from Muslim families.

Shariah principles forbid Muslims from either receiving or paying interest, meaning they could not put money into a traditional savings account.

They are also not allowed to invest money in companies that are involved in tobacco, alcohol or pornography. However, the Children’s Mutual has launched an ethical fund which invests in the shares of companies that are not involved in any of the banned activities.

There is also no interest paid on the account.