5 Best Halal Investment Ideas for 2022

Do you want to increase your wealth in Halal ways? Maybe you’re just starting out as an investor and want to make sure you have a mix of both risky and safe options in your portfolio to start earning money quickly.

Have you ever thought that the stocks you’re putting your money into might be forbidden or haram in Islam? How can you avoid these haram investments while still earning a lot of money?

As a principle, all of your financial dealings and investments must be in accordance with Sharia law. But, it may seem overwhelming for most people to evaluate each investment for social responsibility, ethics, and conformity with Islamic principles. There are companies that could help you assess stocks that are Shariah-compliant. 

Having a good understanding of what Halal stock these companies offer will certainly help. But, what if you want to go on your own and still want to have Halal investments? In this article, we will discuss the top five Halal investments for the financial year 2022 and beyond.

1. Real Estate

Investment in real estate has been popular from times immemorial.  It provides a stable source of income and the security of owning a property.

The basic concept is to acquire a rental property and collect rent from occupants. Real estate typically yields 6-8% annually, but can occasionally reach 10% or more.

Tenant issues are a common complaint from landlords who have investment properties. There are repairs for which you are legally accountable, which might completely wipe out your profits if you aren’t diligent.

2. Stock Market

The stock market is widely considered a top choice for long-term investments. You can choose between two major categories of stock market investments:

• One option is to buy stock in firms of your choosing (of course, you have to choose the ones which offer Halal stocks)
  
• Secondly, you can put your money into funds, where professional money managers will do the investing for you in a portfolio of companies.
  

The most important thing to remember when buying shares is to research whether or not the company is shariah-compliant. To make sure they only invest in Halal companies, fund managers would actively seek them out. Companies like Johnson & Johnson, Adobe Inc., Salesforce, Pfizer, Intel Corp., Canon, and many other publicly traded companies are all Halal.

3. Gold

Gold, as a safe and reliable investment, is always a good choice. Due to its stable value and physical nature, gold has been a popular investment option for ages.

Gold exchange-traded funds can be traded on most major exchanges. Gold and other precious metals can be invested in a Halal manner through Wahid Invest or Wealthsimple. But, there are other companies as well that offer Halal investing opportunities.

4. Halal Cash

Putting your Halal cash into Islamic banking is an excellent approach to making sure your money management is in line with Islamic principles. Islamic banking, as opposed to conventional banks, will use your money in business ventures which are Halal in nature.

For the record, there is no guarantee that your Halal cash investment will provide a specific rate of return. Your returns may fluctuate because assets are handled in accordance with Shariah rules.

Your willingness to accept the possibility of temporary loss or gain is Halal. Money in a bank account cannot earn interest since doing so would violate Shariah law.

5. Startups 

For investors seeking high potential returns with high risk, nothing beats a startup. There are numerous examples of investors reaping rewards from wagers made on up-and-coming companies like Uber and Tesla.

If your investment does not succeed, you stand to lose a significant amount of money. Putting money into something you’re enthusiastic about is a great place to begin.

No one with a little investment budget should even consider this choice.

Conclusion

You won’t believe how many Halal investment opportunities are available. A Muslim investor can choose from a wide variety of options that adhere to their religious and ethical values.

Which of the top Halal investment opportunities for the financial year 2022 will you take advantage of? As a prudent investor, you may want to diversify your investments so that you do not have to incur huge losses if something unexpected happens to your investments.

So, that you may rest easy knowing that your investments are contributing to a better world. You may easily sort and filter your choices to find the best one for you.

Happy Investing!