@dianag Sukuk bonds are going to have a low return. They’re not designed to be high growth funds. If you want growth, you should see if you can buy Amana Mutual funds AMAGX growth fund or AMANX income fund
@dianag At their best, sukuk funds may get you single percentage returns over 10 years.. I am looking at an Islamic ASEAN equity funds performance right now based in Malaysia and the return is -3.12% since it’s inception, meaning you have lost 3% of your capital by investing in it.. Amana growth fund has average annual returns of 14.9%
There will always be risk in any investment, including sukuk funds. One could argue sukuk carries more risk even though it’s designed to be risk free because they are generally denominated in weak currencies, so you face the risk of their base currency being devalued. The Amana fund is based in US dollars. You do face risk with Amana in the event of a major economic downturn, but so far that has not happened.
Some people may say Amana growth fund contains riba, which is true, but one could also say that everything denominated in any currency contains the essence of riba, including sukuk bonds. The Muslim fund managers work full time to minimize your exposure to haram and riba, so I trust their judgement. At the end of the day, you should consult with a trusted Muslim financial advisor that understands both your religious concerns and also understands modern finance.
