Established 1863

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01254 222 700

info@redroseassurance.co.uk

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Stocks and Shares Shariah ISA

Our Shariah ISA gives you a way to invest, compliant with your Shariah beliefs.

Shariah ISA Performance Example

Example based on an initial investment of £10,000 on 1st January 2020:

Period Performance 1 Jan Investment 31 Dec Value
1 Jan 2020 to 31 Dec 2020 +19.3% £10,000 £11,936
1 Jan 2021 to 31 Dec 2021 +26.9% £11,936 £15,152

Please note: This is a risk investment. Past performance is no guide to future returns. You could get back less than you invested.


Main Product Features

  • Flexible. You can:

    Pay in regularly using direct debit with a minimum of just £25pm

    Change the amount or stop paying at any time

    Pay in occasional lump sums via BACS or cheque

    There is no fixed term of years (although you should consider it a medium to long term investment, typically 5 years or more)

    Transfer ISAs from other providers to us

    Transfer our ISA to another provider

    Invest in our Shariah ISA in addition to your Cash ISA each year

    You can make withdrawals at any time, although this will obviously affect the total return

  • Tax free

    Our ISA provides a tax free return when you cash in, transfer to another provider, or on your death

  • Shariah compliant fund

    An investment fund which meets all of the requirements of Shariah law and the principles of Islamic Finance. The Fund will only invest in Shariah-compliant companies and approved financial instruments.

    The Fund is overseen by an independent Shariah Committee that is responsible for:

    Agreeing the investment objectives and policies

    Advising the fund managers regarding compliance with Shariah principles

    Establishing the principles for calculating an appropriate percentage of ‘non Halal’ income and approving suitable charities to receive it

  • Where does the Fund invest?

    The Fund is managed by a specialist team at HSBC. The HSBC Islamic Global Equity Index Fund  invests in diverse areas including Technology, Health Care, Consumer Goods, Industrials, Oil and Gas, Consumer Services and Basic Materials.

    The Fund does not include companies in the following sectors: Weapons and Defence, Pork related products, Tobacco, Alcohol, Financial Services or Entertainment sectors.

Things to consider

You will find more information about the ISA in the Key Information Documents and Key Features Document. Below are some important points that we want you to be aware of:

  • Please note that this is a risk investment – there is no guarantee that you will get your money back. The value of your Shariah ISA can go down in value as well as up, and is based upon the performance of the underlying investments in the Shariah Fund.
  • There is an annual contribution limit set by the Government for ISAs (in total for Cash ISAs and Stocks and Shares ISAs if someone contributes to both types). This is currently £20,000.
  • Inflation will have an effect on the future purchasing value of your investment.
  • HMRC could change the tax status of ISAs in the future.
Stocks and Shares Shariah ISA
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Product Comparison Table

Product
Tax Exempt Savings Plan

ISAs

Investment Bond
Min prem £10 £25 pm
or £500 initial
£500
Max Prem £25
(a taxable version is available if a higher premium is required)
£20,000
for the current tax year
Unlimited
Min age at outset 17 18 Birth
Max age at outset 74 None 90
Min term (years) 10 None
but should be considered a medium to long term plan (5 years or more)
None
but should be considered a medium to long term plan (5 years or more)
Max term (years) 30
(but must mature before 85th birthday)
Unlimited Unlimited
Fixed term Yes No No
Flexible contributions No Yes
can add lump sums, amend or stop regular payments and start again later
No
Life cover Sum assured plus all bonuses added to date of death 101% of the ISA value at date of death 101% of the Bond value at date of death
Transferable No Yes
can be transferred from or to another provider
No