About Sukuk Funds
What is a Sukuk Fund?
Sukuk is an investment approach focused on the preservation of capital and income. It typically includes investments like government and corporate sukuk, CDs and money market instruments. Fixed income can offer a steady stream of income with lower risk than stocks.
Why choose Sukuk Funds?
Lower risk than stocks:
Investors who are closer to retirement may rely on their investments (assets that have a stated objective of return of principal) to provide income. Because sukuk investments are typically lower risk than stocks, they can often be a promising source of income.
Capital preservation:
Because sukuk assets are generally less sensitive to economic downturns, fixed income investments can carry less risk than stocks. If you’re seeking to grow your investments over a longer period of time, allocating a portion of your portfolio to sukuk investments can potentially help offset any stock market swings.
Income generation:
Investors receive a fixed amount of income at regular intervals in the form of coupon payments on their sukuk holdings, resulting in a steady form of income.