Ramadan is once again upon us, and it is an important time for Muslims to reflect on how their finances are managed. It also provides an opportunity to give back to the community and improve the standard of living of the less fortunate by paying your zakah. The importance of paying zakah cannot be underestimated, as it is a powerful socio-financial tool to redistribute wealth to the needy with the aim of alleviating poverty.
Your ability to maximise your zakah contributions every year requires to make you sound investment choices. Therefore, investing your wealth in Shari’ah-compliant products can ensure that your assets increase over time through compounded returns, thereby increasing your zakaatable wealth. This will allow you to increase your contributions to the less fortunate over time.
In addition, by virtue of investing in a Shari’ah-compliant fund, the pooling of non-permissible income and the distribution of these funds to charitable endeavours play an empowering role in improving the living standards of the less fortunate, encouraging them to become future givers of zakah.
The chart below is for illustrative purposes and shows how an amount of R100,000 invested in the 27four Shariah Active Equity Fund would have grown if invested since inception of the fund, with the comparative zakah contribution on the capital vs. if invested in the fund:
Source: Minimum Disclosure Document: 27four Shari’ah Active Equity Fund, Feb 2024. Annualised return since inception (June 2012) of the fund to 29th February 2024 is 9.07%. Over time of almost 12 years, your R100 000 would have grown by R189 133, increasing your zakah contribution from R2500 to R7228.
Your faith guides your life; let it also guide your investments. Grow your wealth with 27four Investment Managers, leaders in Islamic financial products.
For investors looking to invest in a Shariah compliant manner, we have a comprehensive fund offering that caters to every investment objective and risk profile. Our range of diversified, Regulation 28 and Shariah-compliant funds are ideal for long-term wealth creation.
Our consistent application of our investment approach is designed to deliver superior risk-adjusted performance over the long term.
The below table indicates the fund suitability for each of our unit trust Shariah compliant funds:
