Halal Investing Guide
Build a portfolio around Islamic finance principles: screen stocks, compare halal ETFs, understand sukuk, calculate purification, and plan zakat before you invest.
The halal investing workflow
A practical process for Muslim investors who want to combine screening discipline with portfolio planning.
Screen stocks before you buy
Start with business activity and the AAOIFI 30/30/5 ratios before looking at valuation or performance.
Build diversified exposure
Use screened individual stocks, halal ETFs, and sukuk to avoid concentrating your portfolio in one company or sector.
Track purification
When a mixed company has a small amount of non-permissible income, calculate the proportion to donate instead of keeping it as profit.
Plan annual zakat
Investment accounts, cash, crypto, gold, silver, and business inventory may all affect your zakat calculation.
AAOIFI screening at a glance
Halal stock screening starts with business activity, then checks financial ratios that can change as companies report new results.
Business activity
Avoid companies whose core revenue comes from prohibited sectors such as conventional finance, gambling, alcohol, pork, tobacco, weapons, or adult entertainment.
Debt ratio
AAOIFI screening looks for interest-bearing debt below 30% of market capitalization.
Cash ratio
Cash and interest-bearing securities should remain below 30% of market capitalization.
Non-permissible income
Haram or doubtful income should remain below 5% of total revenue, with purification calculated when needed.
Explore the halal investing cluster
Move from education to action with Halalytic tools and guides for the main decisions in a Muslim investor's portfolio.
Halal stocks by index
Browse screened stocks from the S&P 500, NASDAQ-100, Dow Jones 30, FTSE 100, and TSX 60.
Halal stock screener
Check a single ticker against AAOIFI business and financial screens.
Compare halal ETFs
Review halal ETF options side by side before choosing broad portfolio exposure.
Sukuk guide
Understand Islamic fixed income and how sukuk differ from conventional bonds.
Zakat on stocks
Estimate zakat for shares, ETFs, and investment accounts.
Ask Halalytic
Ask Islamic finance questions and jump to the most relevant Halalytic tools.
Balance growth, income, and obligations
Equities
Use screened stocks or halal ETFs for long-term growth exposure.
Sukuk
Consider asset-backed Islamic fixed income instead of conventional bonds.
Zakat
Review zakatable assets annually and keep records for shares, cash, crypto, gold, and silver.
Frequently asked questions
Disclaimer: This automates AAOIFI screening but cannot replace scholar review. This guide is educational and is not financial, legal, tax, or religious advice.
Ready to screen your first investment?
Search a stock, compare halal ETFs, then use the zakat calculator when you review your portfolio.