By Chris Latham 
September 18, 2013

Most advisors don’t have to choose between respecting clients’ religious beliefs and maximizing their wealth. But sometimes a situation comes up where faith and finance intersect. Some religions forbid adherents from making certain types of investments; others require that believers set aside a portion of income for charity or to support their organization. Advisors who have handled such situations say that doing so with grace and creativity can earn unusually deep client loyalty — or even turn prospects into clients…

“The biggest challenge in Sharia investing is how do you reduce the portfolio risk?” Virji says. “It’s a lot harder than socially responsible investing in general.” For instance, since most fixed-income assets and the financial-services sector are off-limits, Virji’s strategies favor equities and the technology sector. Yet he estimates that only about 9% of stocks that trade in the U.S. are Sharia-compliant. One compromise is the Sukuk market, which allows clients to hold bondlike securities issued by foreign banks through a structure that technically lacks debt.

Excerpt from Financial Advisor IQ article.

Read the full article here: https://financialadvisoriq.com/c/580024/65314?referrer_module=SearchSubFromFAIQ&highlight=shariaportfolio