Halal stocks investing is too complicated for me. How could we make it easier?

💰 Everyday Islamic Finance Savings & Investing
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#1

Salam Alaykom

How is life :smiley: ?

If I understand well, before investing in stocks/ETF, we need to :

1- Check if the stock/ETF is halal
2- Calculate Zakat
3- Calculate the purification amount

First, to check the halalness, some islamic screener or ETF issuer approve that the equity is halal but other disapprove it. Example: Apple, MSFT

Second, the Zoya Zakat calculator is GREAT but I can not find a lot of european and Japanese stocks. And based on Zoya Zakat calculator, I should avoid some sectors like Gas&oil because the zakat amount exceeds 2% of the total invested amount. If I add US withholding tax, french taxeS and inflation, I am sure to loose money.

Third, I didn’t find a purification amount calculator. So if I consider that the non halal part is 5%, I have to donate each year 5% of the net profit and 5% of capital gain when I sell the stock/ETF.

My question is : is there any simpler way to invest halal?

For the moment, the only halal simple investment that I found is MSCI Saudi Arabia ETF because saudi companies pay already zakat and there is no purification amount to pay.

Thanks

1 Like
#2

Just buy a sharia compliant fund that does the purification.

The zakat you’ll have to normally do yourself because how does the fund know if you are zakat eligible.

#3

This is likely due to the use of a different screening methodology.

Can you email us at support@zoya.finance with details on which specific stocks are missing so we can investigate it further?

We’ve written a comprehensive guide on purification here.

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