What are the Halal Investment Options In India?

What are the Halal Investment Options In India?

Halal Investment Options In India are limited. Indian economic system does not have any direct options to support Islamic Banking or Shariah-based financial structure. However, a company can abide by shariah based rules and ensure that the business structure is 100% Halal.

People are with the conception that Halal Investments are easy and can give back huge returns. However, on the contrary, halal investment management is not at all an easy task. In fact it’s much more complicated than the conventional processes of investment management. However, by investing for long term a reasonable profit can be earned.

It’s Unfortunate, that many people compare Halal Investment Options In India with interest based companies. The reason, being most of the companies follow monthly returns system which is not usual with companies with real business. However, this is majorly done to attract investors and others through referrals. Recently, we have noticed the system of monthly returns really doesn’t work for long term businesses.

Companies which do Halal Business have limited options left out in terms of raising money and getting funds which are an important source of doing business. They cannot get money on interest, loans from financiers or banks, investments from companies which deal with interests or conventional banks.

Hence to secure the investments and make long term planning, our company follows two rules:

1. Lock-In Period: This helps to lock the investment for a minimum of one year, which ensures consistency of funds and proper planning. Most of the Halal Investment Management companies failed because of no proper lock-in period. And an investor had an option to take back money when ever he likes, thus generating possibility of imbalance in managing funds for the company.

2. Quarterly Profit Sharing: Our company shares profits only once in 3 months. This helps us to manage the business properly and reduce the efforts of payments. To understand more about successful investments planning see : Tips for successful investments

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