Cur8 Capital launches Shariah-compliant IFISA
Shariah-compliant investment platform Cur8 Capital has launched an Innovative Finance ISA (IFISA).
Cur8 Cash was launched in the middle of August, enabling consumers to earn returns ranging from 4.6 per cent to 4.9 per cent by holding funds in pounds or dollars respectively.
Co-founder Mohsin Patel told Peer2Peer Finance News that the new product is “quite groundbreaking” as it enables investors to earn tax-free returns while complying with Islamic values.
Read more: Loanpad explores Shariah products to build on religious loan offerings
Earning interest is forbidden under Islamic law, so observant Muslims cannot use cash ISAs. Cur8 Capital’s IFISA offers individuals a share of profits rather than interest.
It also gives investors the option to hedge their risk by putting some of their portfolio in dollars, with one-month access which it says gives much better liquidity than Islamic banks’ deposit accounts.
Patel said that Cur8 Cash has “got off to a good start” and that the platform is planning to offer more IFISA-eligible products in the future, which could potentially include real estate investments.
Read more: Nester launches first Shariah-compliant IFISA
Cur8 Capital is owned by Islamic Finance Guru, which is authorised by the Financial Conduct Authority.
The company’s mission is to level the playing field and help the Muslim community, which Patel said is currently underserved by mainstream financial products.
As well as Cur8 Cash, it offers real estate, venture capital and fixed income investments, all of which are Shariah-compliant but not currently ISA-eligible.
“It’s not just about the returns, it’s about making an impact,” said Patel. “All investments are ethical and consistent with Shariah principles.”
Read more: Islamic finance moves towards open banking