In a Shari’ah based equity fund, the fund-management invests the fund’s capital partly or completely into shares of corporations, that are listed at a stock exchange and adhere to the Shari’ah rules outlined above.

Shari’ah - equity funds are especially suiting for long term wealth accumulation, for example in the form of monthly payments of a fixed sum into the fund. For the private client, equity funds are a useful for investing into the stock market without being exposed to the risk that handling a limited variety of stocks would create. Investment funds store hundreds of shares in their portfolio and thus can distribute risk over a huge amount of positions. Thus via an investment fund, a private client can invest into a huge selection of shares like a professional investor. Equity funds have a high revenue potential - historically over a period of 5 years and more, a well managed equity portfolio yields the highest return in comparison to all other asset classes. Nevertheless, stocks are sometimes prone to high volatility, so on a short term basis, an equity based fund has a greater risk than a fixed income fund or a saving account.