Top 3 Mutual Funds to Invest in India (2025)
🥇 1. Quantum Ethical Fund – Best Halal Mutual Fund in India
Fund Type: Equity | Ethical | Open-ended
Managed by: Quantum Mutual Fund
Shariah Screening: Certified by ShariahCap Advisors
Ideal For: Long-term investors seeking Halal, growth-oriented equity exposure
💼 Key Features:
India’s most trusted Shariah-compliant mutual fund
Invests only in companies that pass strict ethical and Shariah filters
Avoids interest-based, speculative, and non-compliant industries
SIP-friendly and suitable for retail and institutional investors alike
📈 Why It’s the Best:
Quantum Ethical Fund has consistently proven its value by combining performance with principles. Backed by ShariahCap Advisors, it offers 100% Halal investments with regular compliance audits. Investors who want ethical growth without dealing in non-permissible sectors will find this fund perfectly aligned with their beliefs.
🥈 2. Tata Ethical Fund
Fund Type: Equity | Ethical | Open-ended
Managed by: Tata Asset Management
Shariah Screening: Internal + Ethical investing principles
Ideal For: Investors looking for trusted brand exposure and ethical investment options
💼 Key Features:
One of the oldest ethical mutual funds in India
Invests in Shariah-compliant businesses across various sectors
Backed by Tata’s reputation and experienced fund managers
SIP and lump-sum options available
📈 Why It’s a Strong Choice:
Tata Ethical Fund is backed by one of India’s most reliable conglomerates. While not solely marketed as Islamic, it closely follows Shariah-compliant filters, making it a viable choice for both Muslim investors and ethical-conscious Indians. Its long-term track record and stable returns make it ideal for balanced growth.
🥉 3. Taurus Ethical Fund
Fund Type: Equity | Ethical | Open-ended
Managed by: Taurus Mutual Fund
Shariah Screening: Certified by ShariahCap Advisors
Ideal For: Faith-conscious investors wanting consistent long-term returns
💼 Key Features:
Invests in companies that meet strict Shariah and ESG filters
Screens for debt ratios, interest income, and unethical business practices
Small but growing investor base in India
Professionally managed, diversified across sectors
📈 Why It’s Worth Considering:
Taurus Ethical Fund is another Shariah-compliant mutual fund in India, certified by ShariahCap Advisors. Though relatively less known than Tata or Quantum, it offers a solid ethical investment strategy and has shown resilience across market cycles. It’s a great choice for those diversifying within the ethical space.
💡 Who Should Invest in Shariah-Compliant Mutual Funds?
Muslims looking for Halal investment options
Ethical investors seeking ESG and socially responsible portfolios
Beginners who want to invest in value-driven funds
Long-term investors aiming to build wealth ethically
These funds are not just for religious reasons — they often avoid high-debt and speculative companies, making them stable and long-term oriented.
📌 Final Thoughts: Why Ethical Funds Matter in 2025
The future of investing isn’t just about returns — it’s about values. As more Indian investors seek transparency, ethics, and sustainability, funds like Quantum Ethical, Tata Ethical, and Taurus Ethical stand out not only for their compliance but also for their potential to deliver consistent returns over the long term.
Whether you’re starting a SIP for your child’s education, saving for retirement, or just beginning your wealth journey — choosing Shariah-compliant mutual funds in India is a powerful way to grow your money the Halal way.
📥 Ready to Start Investing?
Explore these mutual funds via platforms like Groww, Zerodha Coin, Paytm Money, or consult your financial advisor to begin your Shariah-compliant investment journey in 2025.
📌 FAQs
Q1. Are Shariah-compliant mutual funds legal in India?
Yes, they are SEBI-approved and operate under the same regulations as all mutual funds.
Q2. Can non-Muslims invest in ethical funds?
Absolutely! Anyone who believes in responsible investing can invest in these funds.
Q3. Is Quantum Ethical Fund Halal?
Yes, it’s one of the best Halal mutual funds in India, certified by ShariahCap Advisors.