The city based Bonanza Portfolio Ltd in a strategic tie up with Pragmatic Wealth Management Pvt.
launched India’s premier Shariah Portfolio Management Services
(PMS ). The service is titled as Bonanza – Pragmatic Shariah fund
(BPS-Fund) and is intended to give around 160 million Indian
Muslims an alternative investment opportunity.
The fund will be managed by investment expert Imtiaz Merchant as per Shariah guideline mandate by Shariah
Board (IIFB). Bonanza Portfolio Ltd will take care of marketing
and operational activities of the PMS fund.
“Shariah PMS is an opportunity for Muslim and non Muslim investor
to employ their savings in superior companies with the angle of
social welfare and not making heavy interest payment compared to
other companies", said
Dr. Khan, Chairman of PWM, while launching the service.
“Equity investment is a profit and loss
based investment and it is fully compatible with Shariah", he
Shiv Kumar Goel Director of Bonanza Portfolio Ltd said, “Initially we are looking at an asset base of Rs 100 crore in India
alone and would soon embark on marketing of the Shariah PMS
product in Middle-East and Europe as well."
“The funds being socially
responsible I expect Non- Muslims to participate as well", he
Imtiaz Merchant, fund manager for BPS-Fund said, “The stocks invested in equity will be selected
from Shariah compliant stock universe comprising large, mid and
small size companies, spread over nine Islamically permissible
"Investment shall not be done in stocks of the companies
whose business activity is prohibited like the Conventional
interest based banks, NBFC, Insurance companies, securities
trading companies, Entertainment includes film Production
companies, cinema, Cable TV, music etc. Alcoholic beverages like
wine and liquor, tobacco and its related products, Pork and non-
Halal food products companies etc", he added.
The fund will be 100 percent equity based and it will not comprise
any debt instruments. The fund will totally refrain from day’s
trading as mandate by Shariah.
The Shariah Fund will be benchmark against Sensex, Nifty and S&P
This fund is for HNIs, Corporate and Retail investors and the ticket size for this BPS-Fund fund is Rs. 5 lakh