Halal Investing for Beginners

Complete this quick guide to get started!

Investing needs a purpose. Whether it’s buying a home, saving for retirement, or funding your child’s education, investing can help in achieving your goals.

Before you invest, save for an Emergency Fund: cash that provides for at least 3-6 months of expenses in case you lose your job or face unexpected losses.

Next, it is best if you invest regularly, like monthly or weekly, for the long term (like 10+ years). Invest the money you would like to save every month.

How long do you plan to invest? Longer horizons allow for aggressive investments, while shorter ones (like being close to retirement) require a conservative approach.

Investing involves risk, meaning your investments can go up and down in value. Understanding your risk tolerance is key to choosing the right investments. How much risk are you comfortable with?

You need at least 5-10 years, if not more, to invest in the stock market. Unless, for example, you are taking high risk for high reward with a small portion of your money.

Diversification means spreading your investments across different assets to reduce risk. You can invest in stocks, real estate, gold, etc.

Interest-based loans carry lower risk. But Interest is haraam. Therefore, halal investing will generally carry more risk (and reward).

At Muslim Xchange, we focus on stocks. None of our services is investment advice. We simply help you learn and do it on your own.

You can reduce risk in stocks by picking good companies of different sizes and industries. At Muslim Xchange, we provide portfolio suggestions of varying risk profiles.

ETFs are a basket of stocks making it easier for you to invest into many companies. ETFs help you reduce risk and diversify your investments for a small fee.

If you have over USD500,000 to invest and/or don’t think you can do it on your own, speak to a licensed portfolio manager. You may contact us if you need a referral.

You need a brokerage account to buy and sell stocks. Some popular brokers are Robinhood (US) and Interactive Brokers (Global).

All good so far? Sign up for a Pro account to use our Portfolio Builder and start investing today!

Investment Calculator

Halal Investment Calculator

Investment Estimator

Initial amount

Monthly contribution

Return rate*

10.5%

0%100%

Period

1y50y

* 10.5% is the avg. annual return of S&P 500 (dividends re-invested) for the last 100 years until July 2024.

Totals

Final balance

Total contribution

Total profit

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Halal Investing for Beginners

Halal Investing for Beginners

Investment Calculator

Investment Estimator

Totals

Risk Profile

Portfolio Builder

Introduction

Key Terms

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