In India, there are only two
fund houses, namely Tata MF and Taurus MF, which offer Shariah-compliant funds. Industry experts say that the major challenge in ethical funds is product awareness and its marginal market demand. These funds only cater to a particular section of society. Some experts also believe that the returns in Shariah funds are not very astonishing as compared to equity funds. Experts believe that creating awareness about these funds will help attract investors. Not only Muslims but also Hindu, Jain and other community might show interest after knowing the significance of these products, they added. The Taurus Ethical Fund was launched in 2009 and has benchmark of CNX 500 Shariah. The scheme has generated annualized returns of 20.97 percent since inception. The Tata Ethical Fund Plan A-G was launched in April 2001 and has given an annualized return of 21.36 percent. The benchmark of the fund is CNX 500 Shariah.