Shariah, in general, refers to a set of guiding moral principles derived from the teachings of the Prophet Mohammed and is inseparable from the practice of Islam. In Arabic, “Sharia” literally means “path,” and is understood to be the path to salvation. Sharia is the sum total of the things that a Muslim must do & things they should refrain from doing.
Shariah-compliant funds have many requirements that must be adhered to. Some of the requirements for a Shariah-compliant fund include the exclusion of investments which derive a majority of their income from the sale of alcohol, pork products, pornography, gambling, military equipment or weapons. Other characteristics of a Shariah-compliant fund include an appointed Shariah board, an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.
Within the mutual fund industry, investors have a choice of two equity-oriented schemes. Of this, Tata Ethical Fund is the oldest and the only scheme with shariah-compliant certification from scholars. The other scheme namely, Taurus Ethical Fund, approved by SEBI as a Shariah-compliant scheme obtained a certification at the time of NFO launch and they use S&P BSE 500 Shariah Index list to benchmark and choose their stocks. We select the stocks from the same universe of Tata Ethical fund and also use S&P BSE 500 Shariah Index to ensure that we are complaint with the shariah law.
Investment Advisor :
Our Investment advisor has 15 yrs of experience and is SEBI certified. He has worked with Aditya Birla money and Reliance capital in the past and is also a consultant for a Hedge fund.
Research & Strategy :
We specialise in research to identify opportunities in the short to medium term through the Information and analytical edge which we have developed over many years. We maintain a database of 240+ stocks with historical quarterly data for many years. This includes all the financial and operational data along with all stock specific sensitivity data, corporate announcements & news all the way to any commodity or raw material cost fluctuations which could impact the stock price movement. We also analyse and record information from the research reports/sell side research of various renowned institutions like JP Morgan, Credit Suisse, Morgan Stanley, Citi, Goldman Sachs, Jefferies, UBS & Kotak. We also have access to Reuters terminal and use Reuters Eikon and Smart estimate to research and analyse financials, valuation mismatch, estimate revisions, future and Consensus estimate etc. Our expertise of 15 yrs in the market coupled with this database of information and the analytical edge of relating this to stock price movement helps us identify opportunities ahead of the general market/price movement.
Shariah Alpha: (A non-discretionary portfolio)
Investment Required: Rs 5 Lakhs+
Ideal Investment horizon : 3 yrs+
The strategy aims to capture the short term changes in stock price in response to new information.The features of the product are as follows:
➢ Recommendations of Stocks are selected from stocks trading in S&P BSE 500 Shariah Index
➢ Calls are generated using fundamental, momentum and event based strategies.
o Fundamental: Includes catalyst driven idea, Potential earnings surprises leading to consensus upgrades.
o Momentum: High in earnings momentum combined with positive news flow, Accelerated near term earnings.
o Event & News Based : Synergies from M&A, Buybacks, Rating upgrade, Positive regulatory actions, Supply disruption, Corporate restructuring announcement, etc.
➢ Each stock recommendation should be allocated with maximum exposure of 10%-20% of trading capital.
➢ The return target of stocks recommended will be in the range of 5-10%, Normal holding period will be 2-6 weeks. Our target is to generate minimum 18-20% avg annual returns for the client.
➢ Probability of success is 70-80% and there is no stop loss as such, exit of positions will be communicated.
➢ Maximum 10 calls might be open at any point of time.
The capital allocation is 10-20% in any stock and investment is diversified across 8-10 stocks. Only the top tier stocks/companies are selected and they are selected based on fundamental study & valuation gap and hence the risk of penny stocks, small caps are non-existent. Also, the Rationale/reason for each buy/sell is shared with the clients. The good part is while all the research and execution(buy&sell) are taken care by us…The Client remains in full control of the funds and investments at all time and can withdraw anytime.
Process, Charges & other details:
- You will need to open a Demat account through us with our preferred broker – SMC Global.
- You will have complete control of your funds and account at all times and can withdraw anytime you want.
- Once the account is created, you may buy or sell based on our recommendation or we can execute the transactions on your behalf.
- Clients profitability will be the top priority, we will not churn your portfolio to just gain brokerage/commission.
- Rationale/Logic for every transaction (Buy & Sell) will be explained to the client.
- The intent will be to generate above average returns by identifying fundamentally strong companies with good growth prospects with fair valuations..
- Regular reports and on demand reports are shared with the client to keep them updated on the P&L.
Charges : Account opening charges: Rs 599/-
With above mentioned services/strategies – Recommendations & execution
Delivery : 0.5% & Intraday : 0.05%
For any further details, please call 9916804769 or email Invest@smartserve.co
Thanks & Regards