Al-Madar US Index Fund is the first fund of its type because it is the first fund to trace the performance of Islamic indexes in the American stock exchanges and is managed by an investment company in Kuwait, this Fund gives investors the opportunity to diversify their investments over 250 listed companies.
The Al-Madar US Index Fund invests in an index which comprises 250 companies operating in accordance with the Islamic Sharia provisions. These companies are selected by the Fund Manager and they are subject to change every three months. The Al-Madar US Index Fund is characterized by the diversity of its investments and easy to liquidate; and it is also distinguished by that it is approximately fully invested at all times and consequently it avoids the possibility of being dragged in its performance towards cash. Moreover, the Fund`s strategy which is based on inactive management is expected to result in low trading expenses and accordingly the total management fees of this Fund is lower than the average management fees which are normally collected by the other US share funds that operate according to the Islamic Sharia provisions. Therefore, the characteristics of this Fund are represented by its diversification, liquidity, full investment, lower expenses & costs and lower management fees. So, when we link all these characteristics to the requirements of the minimum subscription which are relatively few, this will make the investment process in the Fund an attractive factor.