Nippon India Mutual Fund Review - Halal Finance Products
Reviewed quarterly and updated for major content changes.
Nippon India Mutual Fund offers halal financial products and services designed to align with Islamic principles. These options provide alternatives to conventional interest-based financial products, using structures like Murabaha, Ijara, and Musharakah.
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HalalWallet 2026 Review
Nippon India Mutual Fund - At a Glance
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Products Reviewed
All
Provinces (Nationwide)
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Category
Our Verdict
Shariah BeES is the most structurally honest halal product in India: nobody's judgment sits between you and compliance, because the Nifty50 Shariah index kicks out non-compliant stocks monthly under TASIS screens that are stricter than global standards. The costs are concentration (17 stocks, a third of weight in two IT names), a tiny Rs 55 crore book that demands limit orders, and a fee (0.82%) that is cheap for the category but expensive for an ETF. Best used as the passive core alongside an active fund, not as a sole holding.
Pros & Cons
What We Like
- Index-enforced monthly compliance discipline - no fund-manager discretion
- Strictest screening in mainstream Indian use (TASIS 25%/2.5%/90% norms)
- No exit load, single-unit tickets, intraday tradability
- 17-year listed history with 11.71% CAGR since inception (30 Jun 2026)
What Could Be Better
- 17 constituents; Infosys plus TCS at roughly 27% of index weight (July 2026 factsheet)
- Rs 55 crore AUM means thin on-screen liquidity
- 0.82% TER vs sub-0.10% for plain Nifty 50 ETFs
- No AMC-level Shariah governance or purification notices
Who Is Nippon India Mutual Fund Best For?
Passive halal investors
Index-screened, no-exit-load, demat-tradable Shariah exposure
Small-ticket starters
One unit (about Rs 474) is the entry
Compliance purists
TASIS's 2.5% interest-income cap is tighter than AAOIFI-based apps and funds
Detailed Analysis
Nippon India ETF Nifty 50 Shariah BeES (NSE: SHARIABEES, ISIN INF732E01128) is the sole exchange-traded Shariah product in Indian equities, listed since 18 March 2009 and formerly branded Reliance/Nippon India ETF Shariah BeES. It passively replicates the Nifty50 Shariah TRI, holding the index's 17 constituents in index weights.
The compliance architecture is the story. NSE Indices Limited contracts TASIS to apply business screens (excluding conventional financial services, alcohol, gambling, tobacco, vulgar entertainment and similar) and financial screens that are deliberately conservative for the Indian environment: interest-based debt at or below 25% of total assets, interest income at or below 2.5% of total income, and receivables plus cash at or below 90% of total assets. Screening runs monthly, and replacements are implemented from the last working day of the month. TASIS also publishes an Income Purification Ratio concept for investors to purge pro rata interest income.
The numbers from the June 30, 2026 factsheet: Rs 55.34 crore month-end AUM, 0.82% base expense ratio, 0.09% tracking error over 36 months, and returns of -14.21% (1-year), 1.76% (3-year annualized), 1.55% (5-year annualized) and 11.71% since inception against the TRI benchmark. Since-inception tracking difference of about -1.25% annualized approximates the historical cost drag. Concentration is severe by design: Infosys (16.75%) and TCS (10.20%) headline an index where IT is 37.38% of weight (index factsheet, July 31, 2026).
What the AMC does not provide matters too: no Shariah board, no fund-level purification notices, no halal marketing. Your compliance guarantee is the NSE-TASIS contract, which is arguably more durable than any single fund house's committee - but investors should understand that distinction before buying.
How It Works
Open-ended index ETF under SEBI regulations. Shariah compliance is not a fund-level mandate but an index-level property: the underlying Nifty50 Shariah is screened monthly by TASIS under contract to NSE Indices, and the fund mechanically replicates it.
Buy on NSE
Purchase SHARIABEES like a stock from 1 unit through any demat/trading account; use limit orders given the small book.
Index handles compliance
TASIS screens constituents monthly; non-compliant stocks are replaced at month-end without your involvement.
Purify yourself
The AMC publishes no purification notices; apply the index methodology's Income Purification Ratio concept or a screening app's purification calculator.
Shariah Compliance Review
Oversight Level
Review details on provider's website
Underlying index screened by TASIS for NSE Indices; monthly compliance screening (NSE methodology, August 2026, crawled 2026-08-06)
TASIS financial norms: debt <= 25% of total assets; interest income <= 2.5% of total income; receivables + cash <= 90% of total assets
Income Purification Ratio published at methodology level
No AMC-level Shariah board or certificates
Shariah compliance should always be verified directly with Nippon India Mutual Fund. HalalWallet reports publicly available oversight information but does not issue fatwas or certify compliance.
How It Compares
Against Tata Ethical: the ETF is passive, mechanically compliant, and cheaper than Tata's regular plan but pricier than its direct plan; Tata gives an actively managed broader universe with purification support. Against Taurus: same active-vs-passive trade with Taurus's printed screens but weaker certification. There is no other Shariah ETF or index fund in India to compare against - this is the only one, which is itself the most important fact for portfolio builders.
vs. Tata Mutual Fund
Active, TASIS-certified fund with purification publication; direct plan is cheaper than the ETF.
Active BSE-benchmarked alternative with printed screening ratios.
New ethical entrant benchmarked to the broader Nifty 500 Shariah.
Bottom Line
The one-trade way to own TASIS-screened Indian large caps with compliance on autopilot. Size it as a core sleeve, accept the IT concentration, and use limit orders.
Products from Nippon India Mutual Fund
Why It's Halal
Compliance is inherited from the index: NSE Indices Limited contracts TASIS (Taqwaa Advisory and Shariah Investment Solutions) to screen Nifty50 Shariah constituents monthly. TASIS business screens exclude conventional financial services, alcohol, gambling, tobacco, vulgar entertainment and similar sectors; financial screens require interest-based debt at or below 25% of total assets, interest income at or below 2.5% of total income, and receivables plus cash at or below 90% of total assets - more conservative than most global Shariah indices. The methodology also publishes an Income Purification Ratio so investors can purge pro rata interest income (NSE Indices methodology document, August 2026, crawled 2026-08-06). Honest caveats: the AMC itself discloses no Shariah board and the fund is not marketed as certified by Nippon - the Shariah layer lives entirely at NSE Indices/TASIS level - and the ETF's tracking difference has run about -1.2% annualized since inception against the TRI.
Nippon India Mutual Fund
Nippon India ETF Nifty 50 Shariah BeES
India's only Shariah equity ETF, listed on NSE under symbol SHARIABEES since 18 March 2009 (formerly Nippon India ETF Shariah BeES). An open-ended index ETF that passively tracks the Nifty50 Shariah TRI by holding index constituents in index proportions. Base expense ratio 0.82%, fund size Rs 55.34 crore month-end, tracking error 0.09% (36-month), all per the fund-wise factsheet with details as on June 30, 2026. Buy from 1 unit through any demat account; NAV Rs 474.03 as on 06 Aug 2026; entry load not applicable, exit load nil; creation unit size 10,000 units for direct transactions with the AMC (crawled mf.nipponindiaim.com 2026-08-06).
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Where Available
Based on listings we track, Nippon India Mutual Fund operates nationwide:
Nationwide availability
Availability may vary by product type. Always verify current availability directly with Nippon India Mutual Fund.
How We Compare
- • We review publicly available information from providers, including Shariah compliance documentation.
- • We compare financing structures, total costs, down payment requirements, and state availability.
- • We prioritize providers that clearly explain their halal compliance rationale and operate with transparency.
- • We note which products are available nationwide versus regionally.
- • Learn more about our methodology.
Quick Answer
Nippon India Mutual Fund offers halal financial products that comply with Shariah principles, avoiding interest (riba) and prohibited industries. Their products are available in 1 state and include Investing options.
Key Takeaways
- Nippon India Mutual Fund offers Shariah-compliant financial products that avoid interest and prohibited industries.
- Products are available in 1 state: Nationwide.
- Product categories include Investing.
- Always verify compliance directly with Nippon India Mutual Fund and consult qualified Islamic finance advisors when needed.
- Compare Nippon India Mutual Fund's products with other providers to find the best fit for your needs.
Important: HalalWallet provides educational information and comparisons to help you explore halal financial options. We do not provide financial, legal, or religious advice. Product structures and Shariah compliance oversight vary by provider. Always verify halal compliance directly with providers and consult with qualified Islamic finance advisors or scholars for guidance on specific products and your individual circumstances.
Sources and review process
This page is reviewed against HalalWallet editorial standards and source documentation.
Reviewed by: HalalWallet Editorial Team
Last reviewed: 2026-03-09
How to cite this page
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For time-sensitive claims (rates, fees, state availability), please verify directly with the provider's official documentation and note the retrieval date.
Related Guides
Frequently Asked Questions
What types of halal products does Nippon India Mutual Fund offer?
Nippon India Mutual Fund offers 1 product across 1 category. Nippon India Mutual Fund is best for [object Object],[object Object],[object Object]. Review the products listed above or contact Nippon India Mutual Fund directly for current offerings.
How does Nippon India Mutual Fund ensure Shariah compliance?
Underlying index screened by TASIS for NSE Indices; monthly compliance screening (NSE methodology, August 2026, crawled 2026-08-06) TASIS financial norms: debt <= 25% of total assets; interest income <= 2.5% of total income; receivables + cash <= 90% of total assets Income Purification Ratio published at methodology level No AMC-level Shariah board or certificates
How does Nippon India Mutual Fund work?
Buy on NSE: Purchase SHARIABEES like a stock from 1 unit through any demat/trading account; use limit orders given the small book. Index handles compliance: TASIS screens constituents monthly; non-compliant stocks are replaced at month-end without your involvement. Purify yourself: The AMC publishes no purification notices; apply the index methodology's Income Purification Ratio concept or a screening app's purification calculator.
Is Nippon India Mutual Fund available in my state?
Nippon India Mutual Fund operates nationwide, though specific products may have regional limitations. Always verify current availability directly with Nippon India Mutual Fund.
What are alternatives to Nippon India Mutual Fund?
Against Tata Ethical: the ETF is passive, mechanically compliant, and cheaper than Tata's regular plan but pricier than its direct plan; Tata gives an actively managed broader universe with purification support. Against Taurus: same active-vs-passive trade with Taurus's printed screens but weaker certification. There is no other Shariah ETF or index fund in India to compare against - this is the only one, which is itself the most important fact for portfolio builders. Tata Mutual Fund: Active, TASIS-certified fund with purification publication; direct plan is cheaper than the ETF. Taurus Mutual Fund: Active BSE-benchmarked alternative with printed screening ratios. Quantum Mutual Fund: New ethical entrant benchmarked to the broader Nifty 500 Shariah.
Are Nippon India Mutual Fund's products more expensive than conventional options?
Halal financing structures can have different fee structures compared to conventional products. Some options may be competitive with conventional rates, while others may have different cost structures. Pricing varies by product type, location, and individual circumstances. Always compare total costs and terms when evaluating options.
How do I contact Nippon India Mutual Fund?
Contact information for Nippon India Mutual Fund should be available through their website or the product listings above. Use the action links provided with each product to visit Nippon India Mutual Fund's website or contact them directly for more information.
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