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

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.


1 Like

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.

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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