This book dives into the world of Shari’ah-compliant investing, specifically for those seeking to align their investments with Islamic principles. As an ethical investor, you’re a “constrained investor,” willing to potentially sacrifice some financial gain to uphold your beliefs. These beliefs are categorized as primary objectives (non-negotiable, like avoiding usury) and secondary objectives (desirable, like maximizing returns).
Islamic finance, built on ethical principles, encourages risk-sharing and entrepreneurship, but imposes restrictions like usury bans and limits on speculation. This shapes your investment universe, presenting both opportunities and challenges. Different interpretations of Islamic law exist, influencing investment approaches. We explore these “Fiqh foundations,” examining prominent equity screening standards and real-life examples to illustrate their application.
The book lets you explore various portfolio allocation strategies, from classic approaches to modern optimization techniques. You will unlock the secrets of building efficient and ethical portfolios that align with your values with practical examples at each step of portfolio allocation. The book offers a comprehensive journey through Shar ’ah-compliant investing, complete with practical examples and insightful discussions.
