Islamic Finance FAQs #
Original Question: As youths, who are still studying maybe, how can we start investing to start gaining an income and how do we make sure that we invest in only shariah compliant companies and businesses?
Investing to get an income is good, however if you are still studying to earn an income then starting a savings habit is more important. There are several investing options available depending on your comfort level.
For a start never borrow to invest. Do not take up a debt that you can’t pay off. So it is very important to ensure that you do not amass a lot of debt when you are just starting out. There are several shariah compliant investment out there . You can start by opening a CDP account and start buying blue chip stocks that are shariah compliant.
There are several out there that gives decent dividends and are relatively stable.
Do not try to speculate on the market. This can be very addictive especially if you lose discipline. Best is to really invest in a company that you want to see grow , value investing is key.
Then there are hard property investments – where you actually own a property. Bear in mind not all property investment can give you a sure profit on your ROI.
Wrong timing and high pricing may set you back for many years – you must have enough cash to pay the installment if there are instances that rental cannot be secured.
There are many ways to invest- best is to do your own reading as well and engage with professional financial planners to ensure you know the risks that you are getting into when investing in any portfolio, stocks etc.
As a Muslim, it is obligatory that we ensure that our businesses are shariah compliant. As Muslim also it is not just the reward in this world that we sought for but also the hereafter, hence Insya Allah your business or you wealth will prosper if we have faith.
