Finding the right way to invest your money can be challenging, especially for Muslims. There may be no end to the opportunities, however it can be hard to find the right for you especially keeping your religious values in mind.
Many people still have doubts about the place of investment and trading in Islam. However, evidence suggests that Muslims were building a strong economy by investing and trading as early as the 2nd century. However, the challenges of modern age raise valid concerns for a modern Muslim.
Here are some effective tips that can help you keep up with your religious values while making an investment.
1. Consider the Goal
Islam suggests that our actions are judged by their primary intention. This rule applies to everyday needs of every Muslim. Hence, you must consider your intentions behind choosing an investment opportunity. You can start by considering your end goal.
Whether you are investing for a dream home or thinking of better education, the answer to your investment being shariah compliant relies on the intention.
2. Look for a Certification
All thanks to technology and respect for everyone’s values, investments have become easier for millions of people worldwide. The answer to an investment being Shariah compliant is not limited only to your knowledge and imagination now.
Instead, there are many market places that offer Shariah compliant options for Muslim investors. You can discover Islamic investment opportunities in Australia or any other part of the world to cut down on confusion.
Even with a certification, it is always a good idea to stay vigilant and ensure that your investment is not being used in any haram activities. There are many Islamic finance loan options available that can help you achieve your goals without pushing your limits.
3. Rethink the Charges
One of the most important things that make you reconsider investment is high fees and charges. Of course, the fee of a fund manager may be one of your biggest concerns. All the little and big expenses in your investment journey contribute to your halal investment journey.
It is essential to measure all the benefits that your fund manager enjoys such as set-up charges and sales fee. It is important to note your fund manager does not become an immediate beneficiary of your investment. You must consider these factors to make your investment comply with shariah rules.
4. Plan an Exit Strategy
It can be very easy to get indulged in investments and diversification of your wealth once you figure out the basics. However, one must always keep in mind that they can dispose of their investments to gain the profits at any time, especially if any changes challenge their values.
After all, there is not much benefit to investments if you are unable to liquidate them at your disposal. Hence, it is always a great idea to plan your exit strategies beforehand. You can also have a detailed discussion with a financial advisor to secure your investments.
