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The shariah compliant investments are considered for investing in keeping with the fixed goals and deals under Shariah. According to the Islamic tradition, you have to be ethically and socially liable while you are looking to invest your money. It indicates that you must invest in those investments that not only profit you but also help the comprehensive development of society.

Major Principles
According to the Shariah investing process, you have to abide by a set of regulations. Such as:

Banning of Interest
Banning on Interest is restricted under Shariah law. You cannot be allowed to pay or receive any amount of interest because it is believed unjust. For, a bank, according to Shariah law, cannot provide you with an interest-based home loan. Instead, the bank can buy the house and again offer to rent it to you, and you must pay rent to a dedicated bank. The bank's rental income will be redistributed to its depositors to share earnings.

Forbidding to Invest in Specific Businesses
According to Shariah law, you are prohibited from investing in some specific businesses that can earn their total income by the sale of alcohol, harsh drugs, pork derivatives, weapons, gambling and other outcomes. For this law, you are prohibited from investing in companies that profit from others, like loan sharks.

Proportional Distribution of Funds
As per Shariah, you have to pay a particular percentage of your income as an action of charity. If you like to compare this action with paying Tax, it is pretty similar in the reason that you share some of your income with others who are not as fortunate as you. This movement of yours is believed to cleanse and purify the rest of your assets.

How to Invest Following Shariah Principles?
According to the Shariah principle, you might invest in mutual funds or stocks. However, it is challenging to pick Sharia-compliant stocks. In that scenario, investing in a Shariah-founded mutual fund might help. Based on Shariah's guides, these funds allow you to invest money in socially accountable firms. With a concentrated investment purpose by Shariah, these mutual funds can deliver capital appreciation, income distribution and diversification. This will help you understand the asset allocation, risk profile, past performance, and further details about the fund.

About the company: https://greenportfolio.smallcase.com/
The Shariah-compliant investments offer a variety of eye-catching investing methods and benefits associated with maintaining top-performing Shariah regulation and law. These types of funds help you to invest money in socially accountable firms based on the guides of Shariah ensuring constant profits.
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Categories: High Dividend Yield and Capital Appreciation, Multi-National Companies (MNC), Smallcap Compounders Advantage, High-Quality Right Price, shariah compliant investments
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Last Updated: March 12, 2022