Wealth Management is followed by most people interested in growing their wealth in a systematic and disciplined manner. It is an advisory run by banks, mutual funds and other such financial institutions. The individuals within these institutions who manage the combined finances of a number of investors are wealth managers who invest on behalf of the institution into financial securities.
Islamic banking has evolved in a large way since it was started. Though it was unstructured and inefficient in the earlier times, it started to get a secure holding towards the end of the last century in way of commercial banks and investor funds within the followers' community.
As the times have passed by, there have now emerged numerous investment funds which do follow the Shari'ah rules of investment along with traditional banking practices. They are in fact the same funds just following the additional Shari'ah practices.
Islamic Banking practices allow only those equity funds which adhere to Shari'ah principles. These include funds that invest in companies that are involved in halal businesses (a business which is designated to be lawful under the Islamic law). Also taken into consideration is if the company is following Shari'ah accounting principles.
Another type of wealth management scheme is trading in commodities which are extremely popular in the Middle Eastern countries. These commodity funds generate incomes by trading in halal commodities. Banks following Islamic banking practices trade in these commodities too.
Investments banks are now offering excellent schemes to Muslim investors who do not wish to trade directly in halal commodities or companies. These banks offer other wealth management services in addition to Islamic funds. Along with the traditional local banks offering special Islamic banking services, the international banks, not to be left far behind are also entering the market. These banks help you make informed decisions on managing the wealth based upon your earnings and your goals.
This is especially helpful for a lot of individuals who do not have either the time or the knowledge to invest in the various investment instruments available in the market. In addition to creation of profits for investors, wealth management institutions also reduce the risk an uninformed investor takes in investing his hard earned money.