Islamic finance principles provide financial principles for Muslim investors to operate within to ensure that the financing and investment activities comply with Sharia law. And because of the Islamic prohibition on earning interest, there is a big emphasis that is placed on screening for how much debt a company has.

As the Muslim economy continues to increase year on year, the Islamic finance industry is also growing to cater for the need for growing halal investment options and products.So for example, a 40/40/20 allocation across those three groups could be a middle-of-the-road kind of approach. These types of investments add diversification to your portfolio as well as give exposure to high growth investments.

Over the last decade, more and more financial institutions and foreign exchange markets have taken steps to place themselves in the Islamic finance and private equity market. I think this book should be reviewed by a good book editor again and the language and layouts should be improved. Avoid Excessive Uncertainty (Gharar): Transactions full of uncertainty or ambiguity are considered haram. Wealthface Limited provides traditional securities and does not intend to engage a Shariah advisor or obtain a fatwa regarding Shariah screened securities.

Some notable examples include the HSBC Insurance Ethical Global Sukuk Fund and NTUC Income Takaful Fund. So now you have a list of asset classes – how do you actually allocate your savings across these asset classes? Halal Investing for Beginners, for the most part, is written in a fairly simply manner that even a beginner could understand.

There are indices out there (like this one) that contain companies that respect the values and beliefs of other faiths as well, like Christianity.Checks on the businesses you are investing in, such as how well they are expected to perform, may not have been carried out by the platform you are investing through. In financial screening for ETFs (Exchange-Traded Funds), it is also essential to scrutinize the compliance of the assets and securities within the fund. of its income comes from interest or investments (this needs to be below 5% to be considered halal). But only where you will either end up holding the gold directly or where you invest through a company that holds that gold for you.

If you seek counseling or advice concerning a personal situation, you should contact an independent certified professional or open an account in Wealthface Invest.As a result, not only are they missing out on growing their money for the long term, but suffering from an annual loss of savings of up to 2. The prohibition of excessive debt and the incorporation of ethical screening processes further distinguish Halal investing. The core difference between traditional investment and Islamic investment is that Islamic finance principles dictate what investments are deemed to be halal or not. If you are looking to diversify your halal investment portfolio, check out Ethis, the world’s leading Shariah-compliant crowdfunding platform.