The Indian equity market offers incredible avenue for Shariah compliant investments. At present, it offers a best alternative, perhaps the only alternative to the Indian Muslim investors (Rabbul- Mal) who would like to invest their saving in Shariah manner, because of absence of islamically permissible financial assets such as, deposits with Islamic financial institutions. The Indian equity market, with its enormous potential for growth, competes favorably with global portfolio managers and high-worth individual investors. The funds that are waiting to be invested domestically could be staggering, given the sheer size of Indian Muslim population over 160 million.

Every Individual has their own specific financial need and expectation based on their risk taking potential, whereas some needs and expectation are common. The evaluation of financial planning has been increased through decades, with emergence of professional attitude and specialization.

It is strategic tie-up between two groups Bonanza Portfolio Ltd (BPL) and Pragmatic Wealth Management P.Ltd. (PWM)

Bonanza Portfolio Ltd is one of the largest financial services in India. BPL follows strong Corporate Governance, Accounting and ethical standards. And it is successful brand in financial sector. It is one of finest broking house in India with registered SEBI approved Broking and portfolio management license with more than 1632 outlets spread all over India in about more than 521 cities.

Pragmatic Wealth Management (PWM) is one of the pioneers of Shariah financial services equipped with strong experts having technical expertise as well. It is headed by Dr. M.Y.Khan as a Non-Executive Chairman along with governing board with Mr. Imtiaz Merchant as a Managing Director. PWM is specialized in Shariah wealth Management Advisory & Research with clear focus on Shariah Compliant or Islamic Investments.

The objective of the strategy is to secure long term gains from the investments in the combination of large and mid size companies which are Shariah compliant. It excludes investments in the industries like Banking, Liquor, Tobacco, pork, Entertainment, NBFCs and Securities trading business etc.

The investments through the fund will be purely delivery based and no intraday trading or derivative trading will be done. Investment will be done in those companies whose business is permissible (Halal) from Shariah point of view and also fulfilling the criteria set by Shariah Board. The core objective behind this philosophy is to provide an ethically sound and socially responsible avenue of the investment to the people.

The stocks invested in equity will be selected from the top 251 Shariah complaint stocks selected by Pragmatic wealth management P.Ltd (PWM) in accordance to Shariah norms, comprising Large, Mid and Small size companies. The market capitalization of these 251 companies is well over 60 percent of the Bombay Stock Exchange. This universe of 251 stocks is the part of ITE Shariah- 251 index develop by PWM and it is in the lines of BSE- 500 and Nifty 500.The fund will be investing in Islamically permissible companies with minimum market capitalization of 1000 crores.

Investment in one Sector will not be more than 25 percent of the fund, and each individual stock will not be more than10 percent of the fund. Investment will not be done in any debt based instruments. Drop down policies are well defined.

The PMS fund will procure Shariah certificate from Pragmatic Wealth Management P. Ltd under arrangement with Shariah board called Islamic Investment & Finance Board (IIFB) this Shariah Board consist of reputed and learned Islamic scholars. The Shariah Board will also conduct a periodic review of all the portfolios of individual clients and will issue the Shariah Certificates.

1. Brokerage and DP charges – 0.30 percent will charge on each transaction. the DP charges as applicable
2. Performance Fee - Taken for every six monthly on average Net Asset Value of the Portfolio.
   The performance fees will be as following:
   • Profit up to 20 percent the fees charged will be 10 percent of the profit
   • Profit above 20 percent the fees charged will be 15 percent on the incremental profit above 20 percent
3. Pre-Closure Fee - Charged only for investors making full withdrawal of funds before the completion of six months duration from the date of opening of Demat account. They will be subject to 0.50 or half percent pre closure fees.

Shariah Laws aim to set ethical standard to promote welfare and protection of investors there for Shariah has prohibited investment in the industry manufacturing wine, pork, tobacco and its related products etc and services sectors like Interest based banks, NBFC, Insurance, entertainment, cinema, music etc. we all know that everyone of us is interested to have healthy, clean and transparent life that is why Shariah fund are for your services.

Looking into the need to invest in equity markets, Shariah scholars have imposed certain restriction and stipulated conditions if these are met then one can invest in equity markets the permissible (Halal) way

1. Restriction Based on the Type of Securities: Investment is done in Shariah compliant stocks. Securities trading in derivatives and intraday trading in stocks are strictly not permitted. Short selling is completely prohibited. Stocks will be sold upon having its complete possession.
2. Restriction on Business Activity: Investment shall not be done in stocks of the companies whose business activity is prohibited like the Conventional interest based banks, NBFC, Insurance companies, securities trading companies, Entertainment includes film production companies, cinema, Cable TV, music etc. Alcoholic beverages like wine and liquor, tobacco and its related products, Pork and non- Halal food products companies.
3. Restriction Based on Financial ratios:
   1. Interest bearing debt of the companies should not exceed 33 percent of its twelve months average market capitalization.
   2. Cash plus interest bearing securities of the companies should not exceed 33 percent of its twelve months average market capitalization.
   3. Trade receivable and other debtors of the companies should not exceed 33 percent of its twelve months average market capitalization.
   4. Interest Income plus any impure income of the companies to its company's total income should not exceed 5 percent.
4. Purification of Impure Income: The profit thus derived from Shariah PMS in needs be purified (purged) and given as charity. (We provide this value added to our client )

With sound economic base and with hundreds of companies complying with Shariah norms, India offers a huge opportunity for Islamic equity investment. If performance as a parameter is considered, it is observed that Shariah complaint investment being low in debt and having sound fundamental principles tend to perform better, hence large non- muslim investors should take the benefit of this socially responsible and above par performing Islamic investments, moreover India, being world's largest democracy, young population, high quality entrepreneurs, vigilant & vibrant regulators gives a clear advantage. India is not only one of the fastest growing economies in the world that offers an excellent investment opportunity on a massive scale.