How to Invest in Shariah Complaint Halal Fixed Income Fund
A fresh opportunity has surfaced for investors seeking a shariah-compliant investment window with a double digit average yield on invested capital.
Last week, Cordros Capital Limited announced that its Halal Fixed Income fund is open for subscription to Muslim and non-Muslim investors with a bias for Shariah investment.
According to the investment firm, a total of 5,000,000 units of the fund is being offered for subscription at N100/unit at a minimum initial subscription of 25 units.
What this means is that interested investors can commit as low as N2,500 to buy the Halal Fixed Income paper for semi-annual income distribution.
Cordros Capital hinted in that targets a 12-14per cent yield on Halal Fund. Investors just have to hold the instrument for at least 90 days and the fund only attract 1.5per cent annual management fee
Subsequent subscription of 10 units at N100 could be made after initial commitment, asset manager said in a statement.
Basically, if you want to invest in Shariah-compliant fixed income securities and investment products over the short, medium, and long term while preserving capital, Codros Capital Halal Fixed Income is the answer.
The firm’s N500 million fund will be invested on behalf of the investors who contributed to the pool in Sukuk (the Fund will invest mostly in Sovereign, Subnational, and Corporate Sukuk instruments, with attractive rental yields), Shariah-compliance fixed income instruments and cash and other fixed income contracts.
The investment in halal has low-risk exposure to equity, yet maximum returns on equity with ease of entry and exit and it is quite affordable even for a starter.
The fund objective, according to asset managers, is for income generation and capital preservation with low risk – at the time when inflation and naira devaluation exposed Nigerians to pressures.
The fund is targeted primarily at investors who have medium to long-term investment horizons, with due consideration for their beliefs in Shariah principles, that are seeking higher returns than typical Shariah fixed deposits, but are averse to the risks associated with equities investments.
#How to Invest in Shariah Complaint Halal Fixed Income Fund
