Muslim Investment Options in Muslims in Canada
I have always been a huge advocate to avoid the Riba (interest) earned or paid. There are definite financial, social and religious reasons for us because Muslims know that they
Muslim communities in Canada have always had a concern that they should put their extra money on savings or investments to make money from or At least to hedge inflation and other factors. Based on my knowledge and experience (which Allah knows best), I am able to delegate the following investment opportunities available in the Canadian market. Investment Commodities
Investment Commodities. Gold and Silver
Gold and silver have traditionally been the best source of long-term guarantee for your wealth. From my study of historical gold prices, they tripled in the last 20 years. Silver is not backward. Conversely, if we take a different time horizon, silver outperforms gold. So, let us say you are not a huge amount of money, you can make a big investment, investment in gold or silver is definitely a choice. It's purely a halal investment, and if you want to invest a longer time, let's say that investing for your child's education savings for a few months a month should not be difficult. So you can protect your wealth, while saving money for your child's education. You can buy gold from a bank or even from a certified gold dealer in Canada
There are other commodities that can be invested, but it is difficult for domestic investors to store these commodities for long periods of time
Fundamental Reasoning Why Stocks Are Halal Investment As an investor, you will be rewarded for the profits of the company and will also bear the loss if any.
Investment company stock
Depending on your investment period, you can invest in different types of stocks, that is, the time period you want to invest and the amount of risk you can handle. In addition, the key is what kind of income stream you want is whether you want to pay dividends on a regular basis or whether you are most interested in capital gains (IPO, which is the most recent interest in companies listed on the stock market).
Examples of stocks you can invest in as Muslims are:
1. Retail Company
2. Oil and gas companies
3. Trading Companies, etc.
There is a list of company types that we, as Muslims, should not invest, ie these will not be considered halal investments. Mainly engaged in the company:
1. Financial institutions, namely banks, loan companies
3. Pork and pork-related products
5. Weapons and ammunition
The list provided above is just an example and is not extensive.
As an ordinary person, there is not much knowledge of stocks on the Canadian stock market, the best thing is to reach out to people who know. They may be your relationship manager in the bank, a Muslim scholar with financial knowledge, know the financial markets or contact a brokerage firm. You need to make sure you have explained in detail your investment criteria, ie the type of company you are looking for
Some banks such as RBC Royal Bank give you an online account that you can use to trade stocks online.
Land and Property
If you have enough cash, you have been saving for a while and want to invest in a halal Choices, properties and land offer you another option. People buy their houses through mortgages and increase their asset base, but this is definitely not a halal option. So, if you are a person who likes to avoid the interest, you should not buy a house by mortgage
There are two cases:
1. You have enough money to buy a house. In this case, you should look for the best investment opportunities in property and land. I've seen people usually invest in buying houses than buying land in Canada. This is not a bad choice, more secure. However, investing in land for future growth potential and development projects may bring you higher returns.
2. You do not have enough money to buy a house in Canada. In this case, since we are almost always immigrants here, there is always an opportunity in your country of origin. You can invest in the smaller properties there, and once you have collected enough money, you can bring it back here (if your goal is to own the property in Canada).
Investing in new companies
You can also start your business with your friends and acquaintances, you usually can not afford . Investing in new projects, ie enterprises, is more risky than investing in an already operating enterprise, but if trade-offs and measurements are right, hard work can produce better returns.
Finally, my knowledge is limited, options are only suggestions, but I hope they can give you an idea of investing in halal and saving yourself from the Riba (interest) curse. . I will be happy to help any of the above