Lesson 4: Halal Investing and Sukuk

About 30 minutes — Values-based lesson

What You Will Learn

This lesson covers:

What halal investing means: investing according to Islamic principles
Industry screening: avoiding haram businesses
Sukuk: the Islamic alternative to bonds
Building a values-aligned portfolio

What halal investing means: investing according to Islamic principles

This section covers the key ideas about what halal investing means: investing according to islamic principles. Discuss with your group or family and explore the concepts together.

Industry screening: avoiding haram businesses

This section covers the key ideas about industry screening: avoiding haram businesses. Discuss with your group or family and explore the concepts together.

Sukuk: the Islamic alternative to bonds

This section covers the key ideas about sukuk: the islamic alternative to bonds. Discuss with your group or family and explore the concepts together.

Building a values-aligned portfolio

This section covers the key ideas about building a values-aligned portfolio. Discuss with your group or family and explore the concepts together.

Check Your Understanding

1. What is halal investing?

Answer: Halal investing means choosing investments that comply with Islamic principles — avoiding interest (riba), excessive risk (gharar), and companies involved in prohibited activities like alcohol, gambling, or tobacco.

2. What is industry screening?

Answer: Industry screening is the process of checking whether a company's business activities are halal. Investors avoid companies that earn money from prohibited industries.

3. What are sukuk?

Answer: Sukuk are Islamic financial certificates similar to bonds but structured differently. Instead of paying interest, sukuk holders own a share of an asset and earn returns from its performance.

4. Can halal investing be profitable?

Answer: Yes! Many halal investment funds perform as well as or better than conventional ones. Values-based investing does not mean sacrificing returns.

Key Takeaways

What halal investing means: investing according to Islamic principles
Industry screening: avoiding haram businesses
Sukuk: the Islamic alternative to bonds
Building a values-aligned portfolio

Session Complete!

Practice & Quiz

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Practice Activities

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