Kansas City Star: Road to Riches: Investing in faith (HT: Rick McGinniss)
When it comes to Wall Street, the Islamic faith seems to have hit on a pretty good idea: debt is bad.
Aversion to indebtedness is one of the tenants of Islam that two mutual funds have followed to notable success amid the lingering credit crisis.
The Amana Growth Fund and Amana Income Fund both carry five-star ratings from Morningstar Inc. But they won’t carry debt or buy stocks in companies that rely on debt.
So, as the financial system has flirted with melting down, the Amana funds have owned no bank stocks.
That’s a victory in itself.
And it is no accident. The funds formed specifically to allow those who follow Islam to invest and keep the faith.
In addition to avoiding companies with debt, the funds avoid companies that rely on alcohol, gambling or other practices forbidden by sharia, or Islamic law. ...
Aversion to indebtedness is one of the tenants of Islam that two mutual funds have followed to notable success amid the lingering credit crisis.
The Amana Growth Fund and Amana Income Fund both carry five-star ratings from Morningstar Inc. But they won’t carry debt or buy stocks in companies that rely on debt.
So, as the financial system has flirted with melting down, the Amana funds have owned no bank stocks.
That’s a victory in itself.
And it is no accident. The funds formed specifically to allow those who follow Islam to invest and keep the faith.
In addition to avoiding companies with debt, the funds avoid companies that rely on alcohol, gambling or other practices forbidden by sharia, or Islamic law. ...
What a novel thought. To live as if debt is a bad thing. It is too bad the Hebrew scriptures and the Greek scriptures of the Bible do not warn about the hazards of debt.
Oh! Wait! They do address the hazards of debt, we just do not believe them. We explain them away as cultural and of little relevance to contemporary life. It is a shame when God's covenant people must learn from others.
Posted by: Mickey | Apr 03, 2009 at 08:23 AM
Hi,
Look into this more closely and you will find that interest is paid but not so clearly understood as interest. If Sharia law id so good, next time you need medical care fly to Pakistan or Sudan.
Tim
Posted by: Tim Wright | Apr 05, 2009 at 11:19 AM