New Hedge Fund To Help Muslims Save For Hajj

Jun 9 2011 | 2:18pm ET

Two companies have launched a hedge fund designed to fund Muslims' trips to Mecca.

The Hajj Fund is designed to allow Muslims to save for the trip to the Saudi Arabian city where Muslim prophet Muhammed first proclaimed Islam. Able-bodied Muslims who are able to afford it are required to go on Hajj at least once in their lifetime.

Given that requirement, the fund's managers, AmanahRaya Capital Group and Fattan Finance, expect that as many as one million Kazakhs will invest in the fund, which aims to return between 6% and 8% annually. The fund expects to be able to send about 200 people to Mecca over the next two years.

"This Hajj Fund is actually a fund to enable the Muslim community in Kazakhstan to have a saving program to enable them to perform Hajj, the fifth pillar of Islam," co-manager Ahmad Rodzi Pawanteh told Bloomberg News.

As befits such a pious enterprise, the Hajj Fund will be Shariah-compliant, investing primarily in real estate and stocks.


In Depth

Debunking Conventional Investment Wisdom

Feb 8 2017 | 3:22pm ET

Due diligence in the hedge fund world has long involved some combination of the...

Lifestyle

'Tis the Season: Wall Street Holiday Parties Back In Fashion

Dec 22 2016 | 9:23pm ET

Spending on Wall Street holiday parties has largely returned to pre-2008 levels...

Guest Contributor

The Future of Private Equity: New Opportunities, New Challenges

Feb 3 2017 | 6:41pm ET

The private equity industry’s astonishing rebound since the financial crisis has...

 

From the current issue of