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Halal Investment Guide & FAQs

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Halal Investing 101 Guides

 
Investing is about making money over the long-term in a way that doesn’t expose you to the risk of losing it all.
 
So the name of the game is building a carefully-constructed balanced portfolio with a mixture of key ingredients:
 
  1. Fixed income
  2. Property
  3. Stock
  4. High growth
 
These investments are ordered in order of risk – with fixed income being the lowest risk and high growth investments being highest risk (generally).
 
Ultimately our Halal Investment Platform will help you choose and pinpoint your preferred portfolio. But before you do that, the below 101 guides should give you a good grounding in the essentials of each asset class.
 
Enjoy these resources below – and if you find them useful – all we ask for is a review on Trustpilot and your duas.
 
 
(Note: there will be a little bit of crossover between the assets covered – but that’s fine as some investments can fit into a couple of different buckets)
 
 

What is a Halal property investment?

For a property investment to be halal, each investment and element of the investment contract must be in line with shariah.
This requires that:
 
  1. The subject matter must be halal i.e. you don’t want to collect rental income from a casino for example
  2. You are not charging interest such as late payment fees
  3. You must have a form of ownership of the property
  4. The capital amount you are using to invest - must be halal. 
 
Read about this in detail here.

 

 

General FAQs

Considerations to buying stocks

Our view is that market order are fine – as the range is determined. Where it isn’t determined – the brokers have a duty to come back to you if its something way off what you wanted to sell for under regs they are bound by anyway.
 
Finally, one can model it as an agency agreement where you give them complete discretion to sell your shares at the best price they get.
 

SIPPS – Simply Ethical or Wahed Invest

We recommend either Simply Ethical or Wahed Invest (https://campaign.wahedinvest.com/ifg). If you set up with Wahed and then call them, they are live with their SIPP but just not public about it. We also really like Pensionbee‘s offering that is sharia-compliant and cost-effective for smaller pensions (under £50k).You can also DIY it with someone like AJ Bell and then just use that SIPP account to buy some Islamic funds.
 
Do subscribe to our mailing list and we’ll share with you a detailed SIPP article in the coming weeks and months.
 

Is it wise to Split your investment?

We can’t advise on specific cases but generally diversification is a good idea and you don’t want to put all your eggs in one basket. You can actually split a lot more than just 2 companies too.
 
 

Can I have access to zero debt companies? 

 

Can I contact you by phone?

We do not have a phone helpline at this stage. You can however email us via our contact us page.
 
 

Halal Stock Screening Course

Unfortunately we no longer offer our screening service as it is just too time-consuming for us.
 
But we have created instead a Halal Stock Screening Course so you can just learn how to do it yourself and quickly screen companies at your own convenience.
 

Do you cover US Investment options?

We do not actively cover the US sharia-compliant financial products market at this stage, though a number of the featured investments on IFG are also accessible from the USA.
 
But iA the USA is high on our list of priority countries to cover next!
 
 

Calculating Haram revenue sources

You should estimate, based on publicly available data. Usually this will mean looking at the primary activities of the company and extrapolating from that. So if a company does 95% timber logging and 5% alcohol manufacture, you would assign 5% revenue to haram sources and purify that amount.
 
 

eToro Islamic Account – Halal or Haram?

In our view the eToro Islamic account (and any other forex Islamic account) is not properly Islamic.
 
We would strongly advise against getting into forex for Muslims, but also for non-Muslims due to the deep risks attached to it.
 
The operators of these companies don’t fully understand what Islamic law says about forex and are just trying to put a veneer of Islam over their products.
 
Forex is at heart a financial instrument (as opposed to dealing in the currency itself) and for it to be worthwhile there is leverage involved.
 
Most people who engage in forex lose money – and they lose it to people like eToro who can make money off losing trades.
 

Resources

Zero Interest Stocks – Halal Stocks

 

Halal Stocks Screening 

 

Guide to halal dividend investing