Sharia investing requires investment decisions to be made in
accordance with Islamic principles. Islamic principles require that
investors invest in shariah compliant financial product, share in
profit and loss, that they receive no interest (riba), and that they
do not invest in a business that is prohibited by Islamic law, or
sharia.
Investing according to Islamic principles can offer many benefits to Muslims and non-Muslims alike. Halal investing encourages a disciplined investment process that promotes in-depth security research and monitoring. Generally, the low debt requirements of Islamic screens facilitate a conservative approach that appeals to risk-averse investors.
Sharia screening tools: Before investing in a company, it is necessary to evaluate its business activities and financial statements to determine where its primary revenues come from and how its balance sheet is managed. A company that meets certain criteria (mentioned below) would be halal, or permissible. If it does not meet the criteria, it would be haram, or not permitted. Biniyog ™ Provides tools for “Business Operation Screening ” as well as “Investing Instrument/Securities Screening ”.
Sharia Portfolio: Biniyog ™’s self-guided “Portfolio Construction Tools” allow institutional investor to construct, manage, evaluate and rebalance sharia compliant portfolio. Apart from self-guided portfolio construction, our “Virtual Investment Advisor” suggests “sharia compliant portfolio” based on individual investors profile.
Sharia Index: Biniyog ™ has developed a Shariah Index based on shariah principle. The shariah index measures the performance of Shariah-compliant companies from an existing “FinTech BD all share index”. For detail Index constituents and screening criteria check ourSharia Index Methodology.