--- title: "Is Amana Growth Fund (AMAGX) Halal?" canonical: https://www.halalwallet.us/is-it-halal/amagx-fund publisher: HalalWallet license: CC BY 4.0 verdict: halal verdict_label: Halal entity_type: fintech_product ticker: AMAGX --- # Is Amana Growth Fund (AMAGX) Halal? **Verdict: Halal** (Generally permissible) AMAGX is Shariah-compliant. It is an actively managed, halal large-cap growth mutual fund from Saturna Capital (the Amana Funds, running since 1986). Saturna selects only companies that pass Islamic screens developed with scholars of the Fiqh Council of North America — excluding interest-based finance, alcohol, gambling, tobacco and other prohibited sectors, and applying financial limits (debt under 33% of market cap, accounts receivable under 45% of assets, haram revenue under 5%). An independent board of scholars, Amanie Advisors, reviews the portfolio quarterly. As with any screened equity fund, purify the small residual incidental income. — per HalalWallet's verdict record. > HalalWallet is not a Shariah authority and does not issue religious rulings. We compile the most complete public record of what Shariah scholars, screening authorities, and mainstream standards say — reproduced from primary sources with dates and citations — and let you decide. ## How we read the evidence AMAGX, the Amana Growth Fund, is one of the oldest and best-known halal funds in the United States, run by Saturna Capital, which has applied Islamic screening to the Amana Funds since 1986. It is an actively managed mutual fund — a portfolio manager selects the holdings rather than tracking an index — with a large-cap growth style, a concentrated book, and famously low turnover. That low-turnover, quality-focused approach lines up naturally with Islamic principles, which discourage speculation and excessive debt. What makes it genuinely halal is the screening and the governance behind it. Saturna developed its screening process in collaboration with scholars of the Fiqh Council of North America and runs it through its proprietary NEPTUNE system, which grades thousands of securities monthly. Companies in prohibited sectors are excluded outright, and the remaining names must clear financial limits: interest-bearing debt under 33% of market cap, accounts receivable under 45% of assets, and less than 5% of revenue from impermissible sources. Crucially, an unaffiliated board of scholars — Amanie Advisors — reviews the portfolios quarterly, so compliance is monitored on an ongoing basis rather than certified once and forgotten. The practical trade-offs are cost and style. As an actively managed mutual fund, AMAGX carries a higher expense ratio than a passive screened ETF like SPUS or HLAL, and its growth tilt means it will behave differently from a broad screened index in different markets. Because even screened companies earn a little incidental interest, a small purification is appropriate — Saturna screens to keep impermissible revenue under 5%, and our purification calculator can estimate the amount to donate. For a Muslim investor who wants active management and one of the longest halal track records available, AMAGX is a well-established, scholar-supervised option; hold it long-term and avoid margin. ## Business activity screen Result: Pass An actively managed U.S. mutual fund seeking long-term capital growth, principally following a large-cap growth style. It holds a concentrated, low-turnover portfolio of screened, quality growth companies (historically tech, healthcare and consumer names). Saturna Capital, the adviser, is solely responsible for security selection and Shariah compliance, using a screening process developed in collaboration with scholars of the Fiqh Council of North America and its proprietary NEPTUNE research system. Companies in prohibited sectors (conventional banking/insurance, alcohol, gambling, tobacco, pork, weapons) are excluded, as are companies breaching the financial screens: debt greater than 33% of market cap, accounts receivable over 45% of total assets, or more than 5% of revenue from impermissible sources. An unaffiliated Shariah board, Amanie Advisors, reviews all Amana portfolios quarterly to certify ongoing compliance. ## Conditions Perform purification on the small residual non-compliant (incidental interest) income; the funds screen holdings to keep haram revenue under 5%. Hold for the long term and avoid margin/short-selling, consistent with the fund's low-turnover, speculation-averse mandate. ## Scholars' and screeners' positions - **Amanie Advisors (Amana Funds' Shariah board)**: An unaffiliated board of Shariah scholars reviews all Amana Funds' portfolios quarterly to certify that holdings meet Islamic requirements; the screening methodology was developed with scholars of the Fiqh Council of North America. ([source](https://www.saturna.com/funds/halal-funds)) - **Mainstream AAOIFI-aligned view**: An actively screened equity fund that excludes impermissible sectors, enforces AAOIFI-style debt/receivables/revenue limits, and provides for purification is permissible for Muslim investors, subject to purifying residual income and avoiding leverage. ([source](https://aaoifi.com)) ## Purification Even screened companies earn small amounts of incidental interest on corporate cash, so a small purification is appropriate. Saturna screens to keep impermissible revenue under 5%; use our purification calculator with the fund's disclosed income to estimate the amount to donate. ## Sources - Saturna Capital — Amana Funds halal focus (reviewed quarterly by Amanie Advisors) (https://www.saturna.com/funds/halal-funds) - Saturna Capital — Amana screening methodology (developed with Fiqh Council of North America; 5%/33%/45% screens) (https://www.saturna.com/insights/investor-education/are-your-mutual-funds-halal) - AAOIFI Shariah Standard No. 21 (investment in shares) (https://aaoifi.com) ## Frequently asked questions ### Is AMAGX (Amana Growth Fund) halal? Yes. AMAGX is a halal large-cap growth mutual fund from Saturna Capital's Amana Funds. It invests only in companies that pass Islamic sector and financial screens (debt under 33% of market cap, receivables under 45% of assets, haram revenue under 5%), with quarterly Shariah review by Amanie Advisors. Purify the small residual incidental income. ### Who certifies the Amana Funds as Shariah-compliant? Saturna Capital runs the screening (developed with scholars of the Fiqh Council of North America), and an independent board of scholars, Amanie Advisors, reviews the Amana portfolios quarterly to certify ongoing compliance. The Amana Funds have applied Islamic screening since 1986. ### AMAGX vs SPUS/HLAL — what's the difference? AMAGX is an actively managed mutual fund (a manager picks screened growth stocks), while SPUS and HLAL are passive, index-tracking ETFs. All three are Shariah-compliant; the choice is active vs passive, cost, and track record. Amana has one of the longest halal track records in the U.S. (since 1986). ## Related verdicts - [Is Amana Developing World Fund (AMDWX) Halal?](https://www.halalwallet.us/is-it-halal/amdwx-fund.md) — Halal - [Is Amana Income Fund (AMANX) Halal?](https://www.halalwallet.us/is-it-halal/amanx-fund.md) — Halal - [Is Amana Participation Fund (AMAPX) Halal?](https://www.halalwallet.us/is-it-halal/amapx-fund.md) — Halal - [Is Manzil Russell Halal USA Broad Market ETF (MNZL) Halal?](https://www.halalwallet.us/is-it-halal/mnzl-etf.md) — Halal - [Is SP Funds Dow Jones Global Sukuk ETF (SPSK) Halal?](https://www.halalwallet.us/is-it-halal/spsk-etf.md) — Halal - [Is SP Funds S&P 500 Sharia ETF (SPUS) Halal?](https://www.halalwallet.us/is-it-halal/spus-etf.md) — Halal --- Cite as: According to HalalWallet (https://www.halalwallet.us, retrieved 2026-08-09). - Full canonical answer feed (JSON): https://www.halalwallet.us/api/llm-feed.json - Site guide for AI systems: https://www.halalwallet.us/llms.txt - Markdown mirror directory: https://www.halalwallet.us/index.md