Alliance Capital is set to debut a shariah-based index in Bangladesh in January aimed at institutional investors.
The index will provide a guideline to institutional investors regarding investing in shariah-compliant shares, reports The Daily Star.
The shariah-index for capital market investment will facilitate minimal risk trading and enable investors get shariah-compliant gains.
Kh Asadul Islam Ripon, managing director of the company, said that the new index aims to offer returns that match or beat the benchmark index of the Dhaka Stock Exchange.
It will comprise about 25 potential listed stocks, which will be selected by S&P Dow Jones through strict inclusion criteria developed by a globally-recognized shariah board.
Ripon further said that the diversified stocks will offer solid growth and returns and are less risky and volatile compared to the general market.