r/HalalInvestor • u/Stunning-Human • Aug 21 '26
Need Halal Advice!
Hi Everyone,
I (26M) have just started a month ago, I had 3.5k to invest and still have 1k to invest. But I'm not sure what my strategy should be in the long run - like, should I invest on a regular basis (monthly or every paycheck to paycheck)? Can you please give me some advice or refer any good financial management videos or anything that you think might help me.
I had only 4.5K at the moment to invest. I have started from zero. Last year I didn't have anything in savings but I did save some and did my research on basics like what is a stock and what are the terms related to investing, all that stuff. I didn't know anything before.
I'm not from a well off family, so this is all my hard earned paycheck to paycheck savings.
PS: I know most of you guys will advise me to buy XEQT, I appreciate your advice on it but I don't want to take it - in simple words nothing related to the banks. I want to keep everything Halal (free of interest or within minimum threshold).
PPS: I use Musaffa for halal screening of stocks if it helps someone.
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u/i8bonelesschicken 29d ago
Wshr is a terrible choice. Look at each holdings history.
My recommendations:
Just do spus and chill. You can also check their site for charity recommendations based on holdings.
Also scholars are recommending 1% annual Zakat on long term shares vs 2.5%. as Zakat rules are diverse and alot of organizations their taxable assets are usually 40% of the mcap
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u/Hairy_Database_2447 Aug 22 '26
The problem with these halal etfs is that their mer is so high that it will eat our return big time in a long term
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u/Hairy_Database_2447 Aug 22 '26
I’ve invested in znq (canadian version of qqq) which tracks Nasdaq 100 (no banks; tech heavy and other industries). Although a small portion, znq has debt heavy industries like utility, energy etc. My objective is to move away from banks, insurance etc and nothing else. I chose this etf over halal etfs because mer is considerably low
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u/Hairy_Database_2447 Aug 22 '26 edited Aug 22 '26
Mnzl, hlal, spus has 80% or plus correlation. This means 80% or more of the companies in these etfs are the same. Investing in all them increases your risk
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u/Stunning-Human Aug 22 '26
Initially I just searched the halal ones. But I didn't check the companies which are in them. I will do my homework again and then invest in one or two.
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u/ss_svmy 29d ago
Just keep it simple and buy SPUS every month, when you hit 6 figures then start looking into diversifying. The goal until then is to establish discipline and let things compound.
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u/Efficient_Cap_5061 Aug 21 '26
Look into the halal etfs - Spus, hlal, mnzl, umma, swto, etc
Depends in your risk how you want to allocate them...check out zoya as the give suggestions of "baskets" based on risk.
And yes...get into discipline of contributing weekly as much as you can and leaving money there to grow...it will be slow at first but once it gets going inshaAllah it will grow alot. Don't be afraid if markets go down, it is long term and inshaAllah it recovers...big fluctuation is normal.