MRI and SRI Mutual Funds

Abstract

There has been a recent increase in the importance of and universal interest in the field of “Islamic Finance.” There are currently investment alternatives which are designed to meet the constraints imposed by Islamic Shariah, such as SUKUKS (Islamic bonds) and Islamic mutual funds. This paper explores the similarities and differences between the components and characteristics of Islamic mutual funds, Christian mutual funds, both classified as Morally Responsible Investment (MRI) funds, and socially responsible investment (SRI) funds. In addition, we explore the possibility of designing a mutual fund which can satisfy the three different groups of investors.