A Complete Guide to Shariah Investing

Ready to Learn to Invest Ethically?

Ready to Invest Ethically?

Ready to Invest Ethically?

Bridging Faith and Finance

People dream about building their wealth without compromising faith-based principles. The pursuit of financial success puts Indian investors into a constant battle between economic dreams and spiritual reliability.

 

A method exists to unite financial growth with religious beliefs.

 

The innovative approach of Shariah-compliant investing enables people to build their wealth according to their principles through ethical financial practices. Financial decisions in our world too often present overwhelming options and moral uncertainties but Shariah investing brings a transparent faith-based direction for progress.

 

All types of investors including technical city workers and those prioritizing family success together with people who wish to invest mindfully will find this guide useful. The advent of Shariah investing brings transformation to ethical finance structures across India.

What is Shariah Investing?

The foundation of Shariah investing rests on investing in line with Islamic laws stemming from both the Quran and Hadith along with orthodox Islamic historical jurisprudence. Shariah investing provides advantages to any individual who wants transparent ethical investment practices driven by social responsibility.


The Basic Idea

In simple terms, Shariah-compliant investing means:

  • No interest (Riba)
  • No involvement in unethical businesses
  • Avoiding speculation and gambling
  • Profit-sharing and asset-backed investments

Core Principles of Shariah-Compliant Investments

 

Shariah investing is built on a framework that ensures both moral integrity and financial sustainability. Here's a quick look:

Key Sectors and Instruments in Shariah Investing


Permissible Sectors (Halal)
 

When investing through a Shariah-compliant lens, the focus is on businesses rooted in tangible, ethical economic activities:
 

  • Technology (e.g., software, IT services)
  • Healthcare & Pharma
  • Renewable Energy
  • Consumer Goods
  • Infrastructure & Manufacturing
     

These sectors are not only compliant, but often the growth engines of emerging economies like India.
 

Prohibited Sectors (Haram)
 

Avoid these in a Shariah-compliant portfolio:
 

  • Conventional Banks & Insurance
  • Alcohol, Tobacco, and Gambling
  • Pork-related products
  • Weapons & arms
  • Entertainment with unethical content
     

Instruments You Can Use:
 

  1. Shariah-Compliant Stocks (screened using financial and sectoral filters)
  2. Sukuk (Islamic Bonds) – Asset-backed, interest-free bonds
  3. Shariah-Compliant Mutual Funds – Like Tata Ethical Fund, Taurus Ethical Fund
  4. Smallcases like Green Ethical Portfolio – Expert-managed Shariah-compliant baskets of stocks
  5. Islamic REITs – In some global markets
     
Pro Tip: Use screening tools like Islamicly to verify if a stock is compliant.

 

Benefits of Shariah Investing

Far from being a niche idea, Shariah investing offers multiple mainstream benefits:

Challenges and Misconceptions

Despite the growing popularity of Shariah investing, there are still a few myths holding people back. Let’s bust them:
 

Popular Shariah-Compliant Funds

As Shariah investing gains momentum in India and globally, a growing number of investment products are emerging to meet the ethical and halal investing needs of modern investors.
 

Let’s look at some well-known Shariah-compliant funds that offer halal investing options:
 

Popular Shariah Funds in India
 

  1. Green Ethical Portfolio – Shariah Investing Theme (Smallcase)

    • A flexi-cap model portfolio of 15–20 carefully chosen stocks screened for Shariah compliance.
    • Backed by real-world growth drivers, Islamicly screening, and ongoing compliance checks.
       
  2. Tata Ethical Fund
    • One of the oldest and most popular Shariah-compliant mutual funds in India.
    • Invests in companies that pass Shariah screening based on sector and financial ratios.
    • Suitable for long-term wealth creation.
       
  3. Taurus Ethical Fund
    • A diversified equity fund aligned with Shariah principles.
    • Avoids interest-based income and haram businesses.
    • Tracks sectors like IT, pharma, and infrastructure.
       
  4. Nippon India ETF Shariah BeES
    • An ETF that tracks the Nifty50 Shariah index.
    • Ideal for passive investors who want exposure to top-performing Shariah-compliant Indian companies.
       
  5. Shariah-compliant PMS & AIFs
    • Portfolio Management Services and Alternative Investment Funds that offer personalized Shariah portfolios for HNIs and UHNIs.
    • Suitable for larger capital with more active portfolio oversight.

Green Ethical Portfolio – Shariah Investing Theme

Let’s now dive deep into the star product designed for ethically conscious Indian investors.

 

Overview

Why It's Unique

  • Comprehensive Compliance: Uses Islamicly's global Shariah screening standard.
  • Growth-Oriented: Focuses on sectors like manufacturing, infrastructure, and consumption.
  • Flexi-cap Advantage: Invests in companies across all market caps—better diversification.
  • Real-Time Monitoring: Non-compliant stocks are replaced swiftly in quarterly rebalances.
  • Dividend Purification: Investors receive notifications and guidance on cleansing impure income.
  • Evidence-Based Strategy: Focuses on companies with strong fundamentals and valuation comfort.

Who is this for?
 

The Green Ethical Portfolio is the right choice for you if you are:
 

  • Seeking stability in volatile markets
  • Want faith-aligned, ethically sound investments
  • Believe in “slow and steady” wealth building
  • Prefer professional guidance without losing control
  • Overwhelmed by too many stock choices
  • Skeptical of generic financial advice
  • Fear of investing in haram companies by mistake

Why Shariah Investing is right for YOU

“I’m not just looking for ROI. I’m looking for peace, purpose, and prosperity. And now I have a way to pursue all three.”
 

Making Ethical Investing the Norm
 

We’re entering an era where purpose and profit no longer need to be at odds.


With Shariah-compliant portfolios like the Green Ethical Portfolio, investors can:
 

  • Stay true to their values
  • Participate confidently in capital markets
  • Grow wealth with clarity and conviction
     

It’s not just about halal returns—it’s about a halal relationship with your wealth.
 

Your Next Step?

  • Watch the portfolio intro video

  • Start with ₹51,534

  • Track your investments with complete transparency

  • Rebalance quarterly, and purify dividends effortlessly


Final Message:

In a world of uncertainty, let your investments be guided by certainty—faith, ethics, and financial discipline.”
 

Ready to invest ethically?

Explore Green Ethical Portfolio – Shariah Theme on Smallcase Now

Green Ethical Portfolio - Shariah Investing Theme

Invest in shariah compliant portfolio of stocks for high growth!

Min. Investment

₹49,752

Recommended

Upto 25 Lacs

2Y CAGR

34.23%