What To Look For in An Islamic Financial Advisor?

These are challenging times for us all. The pandemic has affected us in ways previously unthought of. As global markets continue to adjust to the impact of the pandemic, ordinary Muslims have difficulty making sense of the course of action they need to take to invest their money efficiently, and, according to Shariah principles.

There is no shortage of financial advisors who could advise us on how to invest and manage our money now and well into the future. Many of these financial planners may be highly qualified to chalk out an attractive financial future for us. However, we need financial advisors who cover the technical and Shariah aspects of financial planning in a balanced manner.

The article touches upon the issue which could be important for millions of Muslims in every part of the world.

Essential Qualities of An Islamic Financial Planner

• They have a well-rounded understanding of the Islamic finance industry including social security, stocks, Sukuk, taxes, real estate, and mutual funds
• They are trustworthy and will always put your needs first
• They are an independent advisor without representing any specific company
• They represent a good personality fit for you
• They understand your specific requirements for financial planning well as not all planners understand every aspect of Shariah principles
• And, most important of all, They have a thorough understanding of Islamic finance principles and the products available in the market

Major Islamic Financial Products

An Islamic financial planner needs to be well aware of the following Islamic financial products before they are able to provide sound advice to their Muslim clients.

• Mudarba
• Musharka
• Murabaha
• Wakala
• Ijara
• Sukuk
• Takaful

Planning your financial future is a process that takes years, and you don’t want to make any mistakes and lose your hard-earned money. Make sure you are working with Islamic financial advisors who are well-versed in today’s financial industry while strictly adhering to Islamic finance principles.