Six out of ten UK investment advisors think limited knowledge of Islamic fund providers has prevented them from recommending their products, new research shows.

Research carried out for UK-based Bank of London and the Middle East, a UK-based Shariah-compliant asset manager, showed that nearly 20 per cent of advisors believe their clients would be interested in learning about such funds.

Only 7 per cent said they were familiar with Islamic funds, according to the survey for which 200 professionals were quizzed.

The survey also reflected uncertainty around classification of such funds, with 40 per cent stating that they were not sure whether Islamic investment products are alternative or not.

“The results of this research reaffirm our belief that Islamic funds have been largely overlooked to date," said Nigel Denison, head of asset management at BLME. "Advisors appear to have retreated into the products they are most familiar with in response to the market tumult of recent years. This highlights the importance of Islamic fund providers helping to educate investors; particularly as in this case, a significant number of respondents said clients would be interested in learning more.”

What is more, three-quarters said they are not aware of the similarities between Islamic and ethical investing.

"Focusing on the parallels between ethical and Islamic investing may help to bridge the knowledge gap that currently exists and overcome some of the common misconceptions about Islamic investments," Denison said.