Best Islamic Mutual Funds In Bangladesh (2026)

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Best Shariah mutual funds in Bangladesh:

CAPM IBBL Islamic Mutual Fund – closed-end fund focused on diversified equities with BDT 529.8M AUM.
AIBL 1st Islamic Mutual Fund – balanced closed-end fund with BDT 1,000M AUM and strong equity allocation.
Shanta Amanah Shariah Fund – open-end fund investing in large-cap equities; AUM BDT 467.0M.
EDGE Al-Amin Shariah Fund – open-end fund focused on consumer equities with BDT 141M in assets.
UCB Taqwa Growth Fund – mixed asset open-end fund managing BDT 318M with balanced growth focus.

For individuals searching for ethical financial options that adhere to Islamic investing values, Shariah mutual funds in Bangladesh provide a clear path. As of 2026, the market has grown to 18 active funds, together managing assets worth more than BDT 7.6 billion. These Shariah-aligned portfolios are gaining popularity among both new and seasoned investors. This overview highlights key performance indicators, comparisons between leading funds, and practical advice tailored for those entering or expanding their presence in the Islamic investment landscape.

Risk warning: All investments carry risk, including potential capital loss. Economic fluctuations and market changes affect returns, and 40-50% of investors underperform benchmarks. Diversification helps but does not eliminate risks. Invest wisely and consult professional financial advisors.

Top Islamic mutual funds in Bangladesh

Bangladesh’s Islamic mutual fund landscape features a mix of closed- and open-end funds offering varied sector exposure, risk profiles, and historical returns. While all comply with Shariah principles, their portfolio strategies, asset sizes, and NAV performance differ significantly. Below is a side-by-side overview of key funds that continue to attract both institutional and retail investors.

Top Shariah mutual funds in Bangladesh
Fund Name	Structure	AUM (BDT)	NAV/Unit (BDT)	Focus Sector
CAPM IBBL Islamic Mutual Fund	Closed-end	539.8 M	8.07	Diversified Equity
AIBL 1st Islamic Mutual Fund	Closed-end	1,000 M	6.10	Balanced Equity
Shanta Amanah Shariah Fund	Open-end	510 M	10.07	Large-cap Equities
EDGE Al‑Amin Shariah Fund	Open-end	141 M	10.42	Consumer Equities
UCB Taqwa Growth Fund	Open-end	318 M	9.10	Mixed Asset Portfolio
SEML IBBL Shariah Fund	Closed-end	100 M	~10.00	Equity
IFIL Islamic Mutual Fund‑1	Closed-end	100 M	~10.00	Equity
ICB AMCL First Agrani Bank Mutual Fund	Closed-end	100 M	~10.00	Equity
EXIM Bank 1st Mutual Fund	Closed-end	100 M	~10.00	Equity
ICB AMCL Sonali Bank Mutual Fund	Closed-end	100 M	~10.00	Equity
NCCBL Mutual Fund‑One	Closed-end	100 M	~10.00	Equity
NLI First Mutual Fund	Closed-end	45.8 M	~10.00	Equity
CAPITEC-IBBL Shariah Unit Fund	Open-end	250 M	10.00	Equity & Money Market
HFAML Shariah Unit Fund	Open-end	250 M	~7.51	Growth Equity
UFS-Padma Life Islamic Unit Fund	Open-end	~200 M	~8.95	Balanced
ICL INCTL Shariah Fund	Open-end	150 M	~9.00	Diversified Equity
UFS-IBBL Shariah Unit Fund	Open-end	180 M	~9.10	Equity & Fixed Income
ICB AMCL Islamic Unit Fund	Open-end	~300 M*	~7.23*	Equity

These funds differ in investment strategy, payout patterns, and sectoral bias. For example, AIBL 1st is attractive to income-focused investors due to consistent dividend history, whereas EDGE Al-Amin appeals to growth-seekers with its targeted consumer equity exposure.

Further, if you’re interested in investing in other halal investment options in Bangladesh, you can learn more through any of our guides below:

Halal stocks in Bangladesh.
Halal ETFs and index funds in Bangladesh.
Sukuk bonds in Bangladesh.

Key facts about Islamic mutual funds in Bangladesh

Islamic mutual funds are not just religious alternatives to conventional investing. In Bangladesh, they are highly strategic vehicles built for a dual purpose: preserving faith-based financial integrity and navigating a market that is often volatile and limited in halal assets. What sets Islamic mutual funds in Bangladesh apart is their reliance on deep local screening processes rather than simply mirroring global Shariah standards. These funds often rely on independent Shariah boards and local scholars to audit holdings, ensuring compliance with both Islamic principles and the regulatory framework of Bangladesh’s stock exchanges.

When defining a proper Shariah mutual fund in Bangladesh, it's essential to look beyond surface-level screening. Most follow a strict set of operational filters, such as:

No investment in interest-based banks or conventional financial institutions.
Exclusion of companies earning significant revenue from alcohol, tobacco, gambling, or weapons.
Debt-to-asset ratio must fall within specific Shariah limits.
Interest income, if any, must be purified and either donated or excluded.
Regular Shariah audits to adapt to evolving financial practices.
Must operate with a Shariah supervisory board recognized in Bangladesh.

Market size and growth trends (2020–2025)

Total number of funds. 18
Total AUM (2025). BDT 7.6 billion (≈ USD 69.5 million)
New funds since 2020. 8
Average AUM growth (annualized). 8.9%
Benchmark DSES Index Return (2024). -14.13%

The sector has expanded steadily as both institutional and retail investors seek ethical, equity-based options aligned with religious values.

The AUM data for Islamic mutual funds in Bangladesh (2020–2025) is based on:

2023–2025 data. Verified from LinkedIn insights by Haque, reporting BDT 7.6 billion AUM in 2023 and sustained 8.9% annual growth.
2020–2022 estimates. Back-calculated using the reported compound annual growth rate (CAGR) of 8.9%.

Practical advantages for Bangladeshi investors

If you're investing in a halal mutual fund in Bangladesh, there are some smart advantages you can tap into, if you know where to look.

You skip the zakat guesswork. Halal funds usually give you a clean breakdown of zakat-relevant numbers, so you’re not stressing during Ramadan trying to figure it all out.
You're safer during currency swings. These funds often invest in real businesses and hard assets, which don’t get shaken up as much when the taka takes a hit.
You get better clarity on where your money’s going. Since they follow stricter rules, halal funds often explain clearly how much income needs purification and what’s being filtered out.
It sets you up for international halal investing. Once you understand how these filters work, you’re already a step ahead if you want to invest in global halal mutual funds later on.
Some funds support social good while growing your money. A few are now linking investments to waqf-style projects, so your returns also fund education, healthcare or similar causes.
You avoid getting dragged by bad debt cycles. These funds don’t touch interest-based stuff, so when rates go wild, your money’s not tied up in shaky loans or risky bonds.

How to choose an Islamic mutual fund for investment?

Key factors for selecting a Shariah-based mutual fund

Choosing the right mutual fund that aligns with your faith and financial goals requires careful attention to factors like Shariah compliance, performance history, cost structure, and industry exposure. When evaluating Islamic mutual funds in Bangladesh in 2026, here are five important points to consider, combining both numbers and principles.

Shariah audit frequency & Fatwa transparency

Among the 18 active funds currently operating under Islamic principles:

Only 6 offer full disclosure from their Shariah boards on public platforms.
While 11 conduct quarterly compliance reviews, 7 share updates just twice a year.
Funds such as AIBL 1st and Shanta Amanah stand out for publishing consistent fatwa updates and audit details. This openness is key for faith-based investors seeking assurance.

Portfolio sector allocation

Understanding how funds allocate assets by sector is crucial for balancing returns with risk. Data from 2026 shows:

38% of assets in Shariah based mutual funds in Bangladesh are tied to consumer goods and pharmaceuticals.
29% are invested in industrial and manufacturing sectors.
13% go to Shariah-compliant tech companies, while 20% is spread across halal-certified finance and telecom sectors.

Take EDGE Al-Amin, for example, it holds over 45% in consumer-oriented businesses. On the other hand, Shanta Amanah spreads its exposure more evenly, with no single sector accounting for more than 25%.

Expense ratio

Cost plays a major role in fund selection. Current fee ranges show:

Open-end funds typically charge between 1.2% and 2.5% annually.
Closed-end funds fall between 0.8% and 1.7%.
For instance, Shanta Amanah’s 1.7% annual fee reflects its actively managed structure. In contrast, CAPM IBBL, with a fee of just 1.1%, may appeal to cost-conscious investors, although its recent performance has been moderate.

Historical NAV stability

From 2021 to 2025, the average NAV growth across the top-performing Islamic funds has been 6.3% per year. Even in the tough 2024 market when the DSES Shariah Index dropped by 14.13%:

Shanta Amanah’s loss was limited to 3.9%.
EDGE Al-Amin showed resilience with a 2.1% gain, thanks largely to its focus on consumer-sector stocks.

Dividend history & payout ratio

For income-focused investors, dividend consistency matters.

AIBL 1st has issued annual cash dividends since launch, amounting to BDT 637.5 million so far.
UCB Taqwa has paid dividends in three of the past four years, maintaining a healthy payout ratio above 60%.
Such records can help investors assess both reliability and income potential when comparing one Shariah mutual fund in Bangladesh to another.

Beginner scenario: What if you have 50,000 BDT?

If you’ve got 50,000 BDT and want to invest while following Islamic values, you’re in luck. Several Islamic mutual funds in Bangladesh are getting more popular and offer solid options with low starting amounts. These funds leave out conventional banks, insurance companies, or alcohol producers and focus instead on halal sectors like energy and consumer goods. What many people don’t know is that some of these funds have actually done better than regular ones in certain years.

Let’s run some numbers. If you put your 50,000 BDT into the Shanta Amanah Shariah Fund, which returned an average of 7.5% per year recently, you could have about 57,800 BDT in just two years if the performance continues, and that’s without earning interest. Instead, you're holding shares in real companies that follow halal rules. And unlike fixed deposits, you're not locked in, your money grows as the companies grow.

Another strong pick is the EBL Shariah Fund, which gives regular payouts. It focuses on stocks that pay halal dividends. If you invest 50,000 BDT and the average dividend is 4.2%, you might receive around 2,100 BDT a year in income. And because this income is based on actual company profits, not bank interest, it tends to hold value better during inflation.

Finally, every Shariah mutual fund in Bangladesh is watched over by both Islamic finance scholars and finance professionals. If a company in the fund crosses the line, like taking too much debt, it gets removed. This constant checking helps make sure your money stays halal, without you needing to monitor it all the time. That’s why these funds are a great fit for people who care about both ethics and returns.

How to start investing in Islamic mutual funds in Bangladesh?

Getting started with Islamic mutual funds in Bangladesh doesn’t have to be basic. Here are some rarely-discussed but high-impact tips that can give beginners an edge.

Pick funds that actually put money into real businesses. Ones that invest in sectors like food, transport, or industry often follow Islamic rules more closely and handle inflation better.
Check who’s on the fund’s ethics board. Look for Shariah experts who understand the Bangladeshi market, not just big names from abroad.
See how they deal with any grey-area income. A good fund will clearly tell you how they clean out any non-halal earnings and what percentage of your money it affects.
Join the fund just after it passes its clean-check. Funds go through Shariah audits every few months, investing right after one means your money starts clean.
Choose impact-focused funds if you’re thinking long-term. Some funds also support charitable work or Waqf initiatives, which can be perfect for Zakat or legacy giving.

The future outlook

The Shariah mutual fund market in Bangladesh is on a clear upward trajectory, backed by increasing financial literacy, growing demand for faith-aligned products, and enhanced access through digital platforms.

Market expansion

By the end of 2027, the Shariah mutual fund market in Bangladesh is forecast to exceed BDT 10 billion in total AUM, up from BDT 7.6 billion in 2025, reflecting a 7.2% CAGR.

Retail investor participation is expected to rise by 35–40%, driven by broader awareness of halal investment principles and low-barrier digital account openings.

Demographic shifts

More than 60% of new investors in 2024 were under 40, indicating generational traction for Shariah-compliant investments. The share of women investors in this segment grew by 18% since 2022, spurred by mobile onboarding and female-focused financial literacy initiatives.

Innovation and regulation

The Bangladesh Securities and Exchange Commission (BSEC) has introduced e-KYC rules to enable fully digital onboarding into Shariah-compliant mutual funds.

Product pipelines under development include:

Digital Shariah funds.
Halal fixed-income ETFs.
ESG-screened Islamic equity portfolios expected by 2026.

International comparison

Currently, the Shariah mutual fund market in Bangladesh represents less than 0.1% of national GDP, compared to over 0.7% in Malaysia. This disparity suggests room for 5–7x market expansion with the right policy and infrastructure.

Beyond mutual funds, if you’re also interested in investing in other halal investment options at a global scale, you would want an account with a broker that offers Islamic accounts. The top options for the same are presented below:

Best brokers that offer Islamic account
	Currency pairs	Min. deposit, $	Regulation	TU overall score	Open an account
zForex	50	10		7.95	Go to broker Your capital is at risk.
FOREX.com	80	100	CIMA, FCA, FSA (Japan), NFA, IIROC, ASIC, CFTC	6.87	Study review
XM	57	5	CySEC, FSC (Belize), DFSA, FSCA, FSA (Seychelles), FSC (Mauritius), SCA (United Arab Emirates), CMA (Kenya)	9.3	Go to broker Your capital is at risk.
OANDA	68		FSC (BVI), ASIC, IIROC, FCA, CFTC, NFA	6.89	Go to broker Your capital is at risk.
Plus500	60	100	CySEC, FCA, ASIC, FMA, FSCA, FSA Seychelles, EFSA, MAS, DFSA, SCB	7.57	Go to broker 80% of retail CFD accounts lose money.

Optimize halal returns by tracking fund rebalancing and dividend alignment in Bangladesh

A lot of new investors just pick an Islamic mutual fund and hope for the best. But if you really want to get an edge, keep an eye on when the fund reshuffles its portfolio. Shariah-compliant funds often make changes every few months to stay within Islamic rules. If you invest right before these changes, you might catch better prices as the fund adjusts its holdings. It’s a small timing trick, but it can give you slightly better value over time.

Here’s something even more useful. Line up your fund’s dividend payout with when you give your zakat. Some Islamic funds pay out once or twice a year, and if you plan it right, you can use those payouts directly for your zakat. That way, you’re earning halal income and giving from it without overthinking the math later. It’s not just clean investing, it’s practical faith-based planning.

Conclusion

Islamic mutual funds in Bangladesh continue to evolve as a trustworthy investment option for those seeking to align financial decisions with Shariah ethics. With assets exceeding BDT 7.6 billion and growing annual demand, these funds now serve a wide audience — from conservative savers to active traders. Updated screening, improved digital access, and varied portfolio strategies make them increasingly competitive. Whether you're starting with 10,000 or scaling a long-term halal portfolio, Bangladesh's Shariah mutual fund sector now offers a professional, regulated, and faith-compliant alternative to conventional investing.

FAQs

Can I invest in a Shariah mutual fund through a mobile app?

Yes, many fund managers like Shanta and CAPM offer mobile-friendly platforms for account opening, tracking NAVs, and fund switching.

Are dividends from Islamic mutual funds taxed in Bangladesh?

Yes. Dividend income is subject to a 10% tax deduction at source, even for Shariah-compliant funds. However, exemptions may apply for certain holders.

How do Shariah boards screen Bangladeshi stocks for halal status?

They apply sector-based exclusion (e.g., no banks, tobacco) and financial ratio screens like debt-to-equity and liquidity thresholds.

What happens to haram income accidentally earned by a Shariah fund?

Such income is typically purified — fund managers donate it to charity and disclose the amount in compliance reports.

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Alamin Morshed is a contributor at Traders Union. He specializes in writing articles for businesses that want to improve their Google search rankings to compete with their competition.

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Chinmay Soni is a financial analyst with more than 5 years of experience in working with stocks, Forex, derivatives, and other assets. As a founder of a boutique research firm and an active researcher, he covers various industries and fields, providing insights backed by statistical data.

Mirjan Hipolito is a journalist and news editor at Traders Union. She is an expert crypto writer with five years of experience in the financial markets.

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