Shariah Compliant Investments

[srh]

Halal RRSP / TFSA

This thread is regarding saving options in Canada. I am thinking about saving some money for RRSP / TFSA and was wondering if there are companies who offer these types of accounts and invest the money in a Shariah-complaint way to give good returns.

 

[aashiqmizaaj]

There are companies that claim they offer such services, but I doubt anything is entirely shariah compliant. The taint of interest is pretty much on everything.

 

[srh]

I did a google search and the first company it comes up with is "No Interest Investments" http://nointerest.ca/. Do anybody know them here or has an account with them? Are they good?

 

[GOAT]

I'm gonna open up a TFSA with TD or RBC soon, as far as I'm aware these 'sharia' compliant investment schemes just call interest by another name, no?

 

[srh]

I'm gonna open up a TFSA with TD or RBC soon, as far as I'm aware these 'sharia' compliant investment schemes just call interest by another name, no?

no. I think some of them are really sharia compliant. These 2 looks sharia compliant:
http://nointerest.ca/index.php
http://www.alamin-rrsp.com/index.htm

 

[aashiqmizaaj]

no. I think some of them are really sharia compliant. These 2 looks sharia compliant:
http://nointerest.ca/index.php
http://www.alamin-rrsp.com/index.htm

How do you conclude that these two are sharia compliant?

 

[srh]

How do you conclude that these two are sharia compliant?

good question. I am not 100% sure thats why I said I think they are sharia compliant. My logic may not be sound enough but here it is anyway:

http://nointerest.ca/index.php
I read their investments criteria at http://nointerest.ca/investments.php and looks like they follow the same logic of Dow Jones Islamic Market Index (DJIM). The DJIM Shariah Supervisory Board is pretty good. I also read the testimonials.

http://www.alamin-rrsp.com/index.htm
Their link I got from Ansar Housing http://www.ansarhousing.com/main.htm. I am a memeber of Ansar Housing. Its about personal trust.

 

[aashiqmizaaj]

good question. I am not 100% sure thats why I said I think they are sharia compliant. My logic may not be sound enough but here it is anyway:

http://nointerest.ca/index.php
I read their investments criteria at http://nointerest.ca/investments.php and looks like they follow the same logic of Dow Jones Islamic Market Index (DJIM). The DJIM Shariah Supervisory Board is pretty good. I also read the testimonials.

http://www.alamin-rrsp.com/index.htm
Their link I got from Ansar Housing http://www.ansarhousing.com/main.htm. I am a memeber of Ansar Housing. Its about personal trust.

I remember we had a discussion about this a while back and my own take on the DJIM criteria was that they are too subjective in that 33% has to be this, 33% has to be that. Why 33%, why not 25% or 45% - in any case, based on what I saw of nointerest.ca, you can pretty much invest in any normal mutual fund in the energy sector - virtually all of them cover the big players who are likely raking in cash like there's no tomorrow. Or you can invest in precious metals mutual funds who are also less likely to be using debt to finance their operations.

My own view, and I could be wrong (and sorry if I'm coming off as harsh - my interaction with one Islamic bank CEO wasn't exactly encouraging) is that given the world economy's way of functioning, it is next to impossible to deal with any organization that hasn't been tainted with interest one way or another.

For example, no interest indicates that Microsoft, Proctor and Gamble are part of the Global Iman Fund. I wonder if MS and P&G t issue corporate bonds - if they do, then they are dealing in interest.

 

[srh]

^ what are your views about Al-Amin?

 

[aashiqmizaaj]

I couldn't find anything specific about their investments.

 

[ganeshran]

If you dont want interest from the investment, why not keep in a bank account?

 

[aashiqmizaaj]

If you dont want interest from the investment, why not keep in a bank account?

Why not find a way where you can increase your wealth and not invest in debt financing vehicles, industries that deal with alcohol, weapons, gambling?

 

[srh]

If you dont want interest from the investment, why not keep in a bank account?

then the money will not grow. Remember muslims have to pay 2.5% of money to poor people every year. That means the money will diminish every year if it is not growing.

 

[aashiqmizaaj]

then the money will not grow. Remember muslims have to pay 2.5% of money to poor people every year. That means the money will diminish every year if it is not growing.

Slight correction on that - Muslims pay 2.5% of assets "saved" over a period of one year.

Also, if the amount of assets is less than the value of approximately 80 grams of gold, then said Muslim would be exempt from paying zakaat.

 

[ganeshran]

Wait I'm confused, I thought it was making interest which was not allowed in Islam. Does Investment not come in that category?

 

[ganeshran]

btw India has an Islamic stock exchange where all companies are vetted for compliance

http://www.reuters.com/article/idUSSGE6BQ06K20101227

 

[Amir]

Wait I'm confused, I thought it was making interest which was not allowed in Islam. Does Investment not come in that category?

There can be halal investments, such as those tied to an asset. And whatever cash flows the asset produces, goes to the investors.

 

[midaz]

I am a complete novice in stocks trading and would like to start by investing in Shariah Compliant stocks/funds. Is there an online platform/broker which allows non-US/UK citizens to invest in US/UK based companies? Any recommendations for Shariah Compliant growth and dividend stocks and funds for long term investment purposes