Using Zoya App To Purify Stocks

💰 Everyday Islamic Finance Savings & Investing
#1

Salam Everyone,

I just had a question on which purification method is correct to purify stocks?

Method 1: Multiplying the % not permissible by the capital gains

Method 2: Total Non-Permisslbe Income/Total Income multiplied by capital gains

#2

There are three major opinions when it comes to purification:

  1. Purify dividends only
  2. Purify capital gains only (there are 2 different ways to do this)
  3. Purify both dividends and capital gains

We’ve covered one of the capital gains purification methods in our FAQs which you can read here. However, the method you described is also considered valid by some scholars since it’s much simpler to calculate. @Malak_Kudaimi also touched on this method in her article on the Zoya blog about purifying retirement accounts (link below).