A Step-by-Step Guide to Screening Investments for Shariah Compliance
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Introduction
Before investing in any stock, fund, or business, ensure it aligns with Shariah principles.
This checklist takes you through the exact screening process we use at Halal Wealth Path
— so you can invest confidently, knowing your earnings are permissible.
Our Process
Identify the Business Activity
Ensure the company’s primary source of revenue is halal
Financial Ratio Screening
Even if the main activity is halal, the company may fail if its finances are heavily tied to riba.
Purification Requirement
If a company earns a small amount from haram activities (e.g., interest), you must donate that portion without the intention of reward.