IslamicFinance.de

Azzad Asset Management has announced the release of a white paper detailing the impact of Halal investing guidelines on investment performance. Examining historical data over the last two decades, the white paper offers evidence that Shari'ah-screened indices, which favor industries like information technology and health care and exclude financial services, can outperform their broad-based conventional counterparts over the long term. The paper also shows that the most significant divergence between conventional and Shari'ah-screened indices is the almost complete lack of financials in the latter due to the Islamic prohibition on interest. Azzad's findings follow other research indicating that socially responsible investing strategies can deliver competitive risk-adjusted returns over the long run.