An investment fund which meets all of the requirements of Shariah law and the principles articulated for “Islamic finance.” Shariah-Compliant Funds must follow a variety of rules, including investing only in Shariah-compliant companies, appointing a Shariah board, carrying out an annual Shariah audit and purifying certain prohibited types of income, such as interest, by donating them to a charity.
Shariah-Compliant Funds have expanded in popularity only recently, even though the concept was first developed in the late 1960s………………………………………..Full Article: Source