Shariah-friendly fund for junior Muslims

Shariah-friendly fund for junior Muslims

One hundred and twenty thousand parents of Muslim children born since 1 September 2002, the date of birth from which a child is eligible for the government's child trust funds, have received a CTF voucher, according to estimates from The Children's Mutual.

This week the friendly society launched the first CTF which conforms to the strict guidelines of Shariah law, rules which derive partly from the Koran. 'This product is a solution for the Muslim community, enabling them to take advantage of the CTF within the requirements of their faith,' says Gillian Ford of The Children's Mutual.

According to Islamic principles certain industries are unlawful and investment in these is forbidden. These include tobacco, the production and sale of pork products and non-Islamic structured banking, finance, investment or life insurance.

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The fund will be an actively managed global equity fund using the FTSE Global Islamic Index as its benchmark and, as with all CTF stakeholder accounts, charges are capped at 1.5 per cent while the maximum contribution from family or friends is £1,200 a year.

The account is scheduled to go live in September, but interested parents can register with The Children's Mutual on 0845 6080045 or on www.thechildrensmutual.co.uk

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