Halal Investing for Beginners — Islamic Finance Guru (2024)

FAQs

How to start investing halal? ›

Islamic scholars have established financial guidelines to determine when a business activity is a core source of revenue and when it is not. For example, the "five percent rule" says that a core business activity is one that accounts for more than five percent of a company's revenue.

Contrary to the perception that halal investing limits your choices, ample investment vehicles are available, including stocks, mutual funds, ETFs, real estate, and even newer asset classes like certain cryptocurrencies (controversial) and Sukuk (Islamic bonds).

IFG was started by Ibrahim and Mohsin back in 2015 as a humble blog alongside our corporate careers. Our mission is the same it has been from the start. We want to help the Muslim community across the world get back to a level financial playing field.

Since Tesla is not involved in any of those industries, its stocks are considered Shariah compliant.

These types of investments are not considered Halal/Shariah Compliant since they pay interests: Money Market. Certificates of Deposit.

Halal Investments: The Islamic Roth IRA ensures that all investments made within the account are Shariah-compliant. This means investments are screened to exclude companies involved in activities prohibited by Islamic law, such as alcohol, gambling, tobacco, and weapons.

Yes, Apple shares can be considered Halal.In conformity to Sharia law, ownership shares is considered Halal in the event that the company does not engage in any activities such as gambling, lending or producing alcohol pork, tobacco p*rnography, alcohol, or tobacco.

One example of halal investment is Islamic business financing, which works using new models of profit-sharing, sharia-compliant insurance and sukuk, an Islamic financial certificate that represents a share of ownership.

You can sell halal products such as clothing, jewelry, and food items. There are many platforms that can help you set up your online store, including Shopify, WooCommerce, and Etsy. Online tutoring: If you are knowledgeable in a particular subject, you can make money by tutoring students online.

Which stock is haram in Islam? ›

Key principles of Shariah investment

The company's primary business must be halal (according to Islamic law – Shariah). Under Shariah law, companies engaged in gambling, alcohol, tobacco, etc., are excluded.

Is my personal information safe with Wahed Invest? All your personal information is safe with us. We implement a variety of advanced data encryption measures to safeguard your data. We will never share your details with any third party without your consent.

There are two types of LISA: one is a cash LISA and the other is a stocks-and-shares LISA. If you're looking for a shariah-complaint vehicle, the key is to opt for a stocks-and-shares LISA – and to ensure you're investing in halal areas. (Cash LISAs are not an option because of the interest earned).

Islamic banking laws are also anti-interest so the technology, pricing, and buying and selling of cryptocurrency money is deemed halal by many Islamic scholars who rely on the teachings of Prophet Muhammad PBUH when seeking guidance about permissibility (ultimately, only Allah knows best).

Bitcoin (BTC): The pioneer cryptocurrency, widely accepted and considered halal by many scholars. Ethereum (ETH): The second-largest cryptocurrency by market capitalization, often considered halal due to its utility and use cases beyond speculative trading.

Buying stocks is not haram in general. As long as the company's shares are per Shariah principles, Muslims can invest in that stock. When you are a stock owner, you own a small percentage of the business. However, it is essential that you need to make sure the company in question is aligned with Shariah rules.

Summary of answer. Trading in currencies is halal so long as the exchange takes place in the same sitting as the contract is made.