Written by- Mohd. Asim
Halal means which is permitted or lawful under the Islamic Law known as Shariah. Halal Investment is a financial function in which interest is strictly banned and totally unacceptable in Shariah or under the Islamic law.
In holy Quran it is mentioned that: Those who consume interest cannot stand [on the Day of Resurrection] except as one stand who is being beaten by Satan into insanity. That is because they say, “Trade is [just] like interest.” But Allah has permitted trade and has forbidden interest. So whoever has received a warning from his Lord and desists may have what is past, and his affair rests with Allah. But whoever returns to [dealing in interest or usury] – those are the companions of the Fire; they will abide eternally therein.In Quran, Allah has permitted to trade but interest is forbidden. Now the question is what are the other options of investments in which interest is not involved or what are the different ways of halal investments? This refers to those investment funds or doing transactions that are observant of the Islamic Sharia law. These types of investment are different from the other forms of investment due to its prohibition of investment in companies that may cause high risk to the investor. The main advantage of halal investment is that it encourages people to invest in a socially responsible manner. Investing in industries like manufacturing of alcohol, smoking, pornography, gambling, pork, hedging in silver and gold, which promote an ordinary insurance and financial services that generate their income from interest. They can avoid Invest in companies that earn their profits mainly from interest or interest (lending money for profit). In India, these are the three Shariah-compliant mutual fund schemes, Goldman Sachs CNX Nifty Shariah BeES Fund, Tata Ethical Fund, and Taurus Ethical Fund. If you are planning to invest, these are the options, It is a five-star scheme with an impressive performance record. These are an open-ended equity fund which invests in a diversified equity portfolio which is based on principles of Shariah.
The main objective of this scheme is to provide medium to long-term profits by investing in well-researched value and growth-oriented companies by Shariah-compliant equity and equity-related instruments. Their asset allocation Up to 100% investment in equity & equity Shariah Compliant listed or to be listed and unlisted securities of companies and other instruments if allowed under Shariah principles.
About the author- The Author, Mohammad Asim is a trainee journalist in India Today Media Institute
Published by- Anurag Sharma
Source: http://www.tatamutualfund.com/docs/other-documents/tata-ethical-fund—certificate-of-compliance—aug-2017.pdf?sfvrsn=2 https://quran.com/2/275https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=10218https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=213https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=10244https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=213https://www.valueresearchonline.com/funds/newsnapshot.asp?schemecode=10218http://corpus.quran.com/translation.jsp?chapter=2&verse=275
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