Returning to an old subject we haven’t discussed in a while, I suggest this article on a couple of funds run by Islamic principles. Given the difficulties the financial sector is having a fund which avoids them (because they profit from interest) probably looks pretty attractive right now, especially given the funds stellar performance. I especially like this:
Are you seeing money coming in from non-Muslim investors who find the fund attractive?
Yes. Most of our money today is coming from RIAs and the supermarket platforms, those accounts that they’re managing, so the RIAs really are probably what’s driving most of our sales today, based on performance—I’m sure it’s what they’re after. And I think they’d like to know what they’re buying so we try to educate them so that they’re not surprised when they read the annual reports.
Performance chasers. I bet when they get the report they are surprised. It is sad how many advisors invest in funds they know nothing about except the shiny recent returns.
I’ll provide a clue. Despite the disclosure on everything that past performance doesn’t (predict/guarantee/whatever) future results most people in the financial services industry do not seem to believe it, or it has no effect on their behavior.
[tags] investing, mutual funds. Islam, Islamic finance, haram, interest [/tags]
About Lance
I want to thank everybody who has encouraged me over the past few years to do this. I doubt it will hold but a few people's interest, but that is okay with me. Special thanks go to Peter over at http://www.liberalcapitalist.com.
I value my privacy a great deal, so I will guess you will have to get to know me over time to find out much. I am in the financial services, wealth management, investing or whatever you want to call it business. I have children, my oldest is entering college.
I have no great or imposing academic background, my grades varied from high enough to get invited to an honors program at my university to frustrating enough to cause my father great grief. My major was history, with a minor in ethics. My main interest towards the end was in the history of economic ideas before life took a turn and I ended up never going on to graduate school. However, I have a fair knowledge of history, economics, investing and would probably be considered well read. My tastes are eclectic and I pretty much find the entire world interesting.
I have an enduring interest in how people learn about and analyze the world; my posts here will examine this topic in detail over time. I make no claims to be above the very biases and errors I see in others, in fact it is my belief that we are incapable of escaping them, only moderating their control over us.
I am a member of no political party, but I would broadly consider myself a man of the right. I am inclined to free market economics, limited government and a fairly narrow view of the role of the state. A small L libertarian if you will. However, if you are looking for broad based "the left believes..." or "wingers are so...." types of attacks on liberals, conservatives, neo-cons or whatever enemy you want to slam, look elsewhere.
Lance
