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

Q&A: Reg A+ Will Transform the Alternative Asset Landscape

Jul 7 2015 | 4:03pm ET

In addition to easing capital formation for small companies, Regulation A+ has enormous...

Lifestyle

Hedgies Set to Compete in Wall Street Decathlon

Jun 8 2015 | 12:37am ET

The Wall Street Decathlon — a 10-event physical challenge that will crown “Wall...

Guest Contributor

6 Essential Principles To Balance Your Investment Risk

Jun 26 2015 | 10:07am ET

In this article, financial expert Greg Silberman explores how to hedge a private...

 

Editor's Note