Some new index funds are being developed that will be based on a Dow Jones index that satisfies the strictures of Islamic investors.

A major investment company with broker/dealer operations has discussed with Dow Jones offering a fund connected to the index, said Rushdi Siddiqui, director of Dow Jones' Islamic Index Group. The fund is likely to be introduced in about two months, he said. In addition, two offshore index funds based on the index will be opened within a few weeks, Siddiqui said.

Subscribe Now

Access to premium content including in-depth coverage of mutual funds, hedge funds, 401(K)s, 529 plans, and more.

3-Week Free Trial

Insight and analysis into the management, marketing, operations and technology of the asset management industry.