Islamic investment funds uk

What level of risk are you comfortable taking with your money? There are six standalone Islamic banks and 20 conventional banks offering Sharia-compliant financial products and services in the UK at present — and these numbers are expected to rise. Zakah and purification: For our Muslim clients, Azzad calculates zakah and purification totals on your accounts and informs you of the amount each year for you to pay to charities of your choice. Taxman gets a Christmas bonus as 3, file their tax Purification 7. Stick to the many, not the few!

Halal Investment: A list of all the debt-free UK & US Stocks

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Many of you will know that we launched our inaugural course — Screening for Halal Stocks — earlier this year. Let me give you some background to explain. All of these arguments can, and do, come under sustained attack. Ultimately though, I believe argument a holds some convincing power. But it would only hold this convincing power if it was very difficult, if not impossible, to invest in only those stocks that do not have any debt and construct a well-balanced and profitable portfolio. But is that actually practically and commercially viable?

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Many of you will know that we launched our inaugural course — Screening for Halal Stocks — earlier this year. Let me give you some background to explain. All of these arguments can, and do, come under sustained attack.

Ultimately though, I believe argument a holds some convincing power. But it would only hold this convincing power if it was very difficult, if not impossible, to invest in only those stocks that do not have any debt and construct a well-balanced and profitable portfolio. But is that actually practically and commercially viable? And the results of this screen are quite stunning — this list massively outperformed the market over the last 3 years.

There are a huge number of bio tech, medical and technology companies dominating the top half of this list. This makes sense given these companies often prefer to raise equity rather than debt — and often — given the speculative nature of their business — struggle to get any debt. This is a warning sign. Because anyone who invested in all of these companies would be investing in a very concentrated portfolio focused on tech and medicine.

A hit to those sectors would materially impact islamic investment funds uk a portfolio. Of some comfort though is the fact that there are a surprising number of larger companies in this list of companies. If one were to invest according to the weight of the market cap relative to the overall market cap of the entire list i. Over three years such a portfolio would have risen by By any reckoning that is a phenomenal return. However, a note of caution before you all go piling into this list of stocks: we have had a strong bull run for the last 5 years and in bull runs, tech and medical companies such as the ones in this basket of stocks, tend to do very.

In bear markets when markets decline they are often the worst hit as. These companies are also not your classic income generator that you should have in your retirement portfolio, with low dividend yields 0. They are islamic investment funds uk much growth stocks and quite expensively priced as can be seen below:. The debt-free basket of stocks has clearly done superbly well over the bull market, but it is yet to be seen how things pan out in the next few years when it is anticipated markets will level off and, potentially, start declining from their current highpoint.

The other pressure point is dividend-yielding stocks. Muslims need to have a sufficient universe of such stocks to pick. A lot of these companies are US companies. However, it is a less firmly held view. If backward projection ends up showing that these zero-debt companies fare well through bear markets and busts, and risk analysis shows that the additional risk borne by holders of this zero-debt basket that is quite concentrated in a few sectors is acceptable e.

This is an issue that can potentially have significant repercussions on the way the industry is set up and the debate on this will benefit from the views of other professional in the field, as well as everyday Muslim investors who have looked into this area. So please do voice your opinions in the comments.

That will only enrich the discourse for. Finally, do check out our latest course — Halal Investing for Busy Professionals — for our analysis of the world of halal investing out there today beyond stocks too! Professionally, he is an Investment Funds Lawyer. Leave new Russell Ali July 27, am Market Data- can individual investors obtain market data at a reasonable cost?

I guess this is why you teamed up with a city trader for this article? You can usually filter level of debt with stock screeners like FT. In my experience though, you do have to then do a manual check against the latest set of accounts just in case the screener data is outdated. Thank you. This is very informative for a Novice investor such as. Or only U. K Stocks?

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Investment Islamic Finance. March 29, Ibrahim Khan. Conclusions This is an issue that can potentially have significant repercussions on the way the industry is set up and the debate on this will benefit from the views of other professional in the field, as well as everyday Muslim investors who have looked into this area.

Halal InvestmentsStock MarketStocks. Keep Reading. How to actually invest in stocks and shares — a practical guide 23 Jul at pm. How to deal with Zakat on your investments 31 May at pm. Leave new. Market Data- can individual investors obtain market data at a reasonable cost?

JazakAllah Khair. Salaam Masoom, if you can elaborate on this we can try and point you in the right direction. Leave a Reply Cancel reply Your email address will not be published. Save my name, email, and website in this browser for the next time I comment. Every British Muslim needs a. IFG Wills is an affordable quality option entirely online.

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Is it worth it? That helps us fund This Is Money, and keep it free to use. The views expressed in the contents above are those of our users and do not necessarily reflect the views of MailOnline. Screening and Filtering 2. Zakah and purification: For our Muslim clients, Azzad calculates zakah and purification totals on your accounts and informs you of lnvestment amount each year for you to pay to charities of your choice. Woodford scandal shows why incoming bank governor — and Fujds savings will be worth. But investing through the online wealth manager is not cheap. By Myron Jobson For Thisismoney. What should investors expect for ? Discover a comprehensive wealth management solution for affluent clients, organizations, and business owners.