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Halal Investing for Beginners: How to Start, Grow and Scale Your Halal Investment Portfolio

AR Uncategorized December 3, 2025 1 Minute

Authors: Ibrahim Khan & Mohsin Patel

Book length: 288 pages

Excerpt: Without a will, heirs have no idea about certain assets or how to get access to them.

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KUTUBNOTES

Test Your Knowledge

Recalling strengthens the memory.

3 questions

1. According to the notes, how should you deal with an investment in a company whose activities are haram? Keep both capital and profit after repenting, since repentance removes the issue. Sell immediately and convert proceeds into cash savings without further action. Give away the original capital and keep any profits after repentance. Keep the capital and give away the profit from the haram company's activities.

2. What is a key difference between conventional bonds and sukuk as explained in the notes? Sukuk typically yield over 10% and are considered high-risk speculative instruments. Conventional bonds give ownership of an asset, while sukuk pay fixed interest. Sukuk are simply another name for conventional interest-bearing bonds and are therefore impermissible. Sukuk provide ownership of an asset and pay returns through rent instead of interest; they are typically low-risk with yields around 2–8%.

3. Under the AAOIFI screening rules in the notes, which situation allows you to invest in a company but requires you to 'purify' profits by giving away the haram portion? The business is primarily halal but receives less than 5% of its gross revenue from haram sources, so you must give away that percentage of your profits. An ETF contains at least one company whose main business is haram, but overall haram income is below 5%. The company's main business is alcohol or gambling. The company's total interest-bearing debt exceeds 30% of market capitalization but its products are halal.

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Published December 3, 2025

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Halal Investing for Beginners: How to Start, Grow and Scale Your Halal Investment Portfolio

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