Generate Wealth, Do not lag behind, But never ever indulge in Usury to attain wealth.

Every Muslim in India should not lag behind in the society and should take the advantage of the Economic Growth of this country and the overall rise of the Equity Markets so that the Islamic Community is not left behind in the economic growth that is being witnessed throughout the country. And this will last and advance further in the years to come. Every Muslim should generate wealth, but in the Shariah permitted methods. Truely, trading in Equity Markets is one of them.

Fixed Interest Based Investments like the Saving Bank Deposit, Bank Fixed Deposits; Postal Savings, Debentures, Bonds etc. are not permitted in Islam. Hence as a True Muslim one should not compromise the Religion to gain wealth and if one does, he cannot escape the wrath of Allah and his capital will definitely get depleted over a period of time. Hence investment in Equity Markets with Shariah Compliant Stocks is a far better option available to the Muslims.

Shariah Compliant Stocks in the Equity Market is the most cost effective investment solution for the Muslims to remain in the main stream of the economy, Equity markets have proved that they are not only the most effective, but transparent, liquid and suitable to small and big size investors. Economic history has proved that it outperforms all other asset classes in the Return on Investments (ROI). Therefore Muslims cannot afford to to be away without investing in the Equity Market.

Investment in Stock market is not Gambling – But a Lawful Trade.

Among Muslins there is a misconception that investment in stocks and trading in Equity Market is not permissible in Islam and it is often said that it is 'Haraam'. There are even Muslims who with their own preconceived ideas equate the trading in Equity Markets to Gambling.

If one analyzes with an open and unbiased mind will definitely accept that trading in Equity Markets with Shariah Compliant Stocks is like a normal Trading which most of our Muslims do with Halaal Commodity. Trading in Equity Markets can be compared with trading in Real Estate and/or in Gold.

Stocks that are Sharia Complaint can be Traded and Invested.

Islamic scholars over a period of time have laid down certain parameters for investing in the Stock of any company in the Equity Markets based on its Activities & Line of Business and the Financial Ratios of that Company. Stocks which fulfill these parameters are compliant in 'Shariah' to be invested in by the Muslims.

A Muslim cannot invest in the Stocks of the Companies having High Degree of Interest Income or High Debt and/or those involved in the business of Banking, Life Insurance, Alcohol, Tobacco, Gambling, Non-Halal Meat, Music, Cinema, and/or Pornography. Muslims in India are compromising their religious beliefs. Those Muslims who aspire to invest in accordance with Islamic Principles unfortunately the Investment Products and Services in India are invariably incompatible with Shari’ah principles.

The only disadvantage with the Equities is the risk associated with them. In order to overcome this risk, one needs to take guidance from Shariah compliant Equity Research Analysts, like HALALMONEY.ORG who can guide and advice on which Stock to buy and most importantly when to buy and sell. If this part is efficiently and judiciously taken care of, then there is no better option than equities for the Muslims.

Investments in Real Estate & Precious Metals though permissible have inherent disadvantages.

Investment in Real Estate/ Properties, though permissible in Islam, has got inherent disadvantages over Equities. Firstly, because of the unit size, it is not possible for every individual to buy a property since the cost involved is huge whereas, one can invest in any Shariah Compliant Stock in Equity Market for an amount as low as Rs. One thousand and there are no upper limits. Secondly, Property is subject to a lot of legal paper work and one has to go through a very cumbersome procedure to acquire properties. Finally, there is often a threat of encroachment of the property which involves costly litigation.

Investments in Precious Metals (Gold, Silver, Platinum) are permitted in Islam. But from the point of view of economics and return on investments, these precious metals can at best beat the inflation and since they are globally traded with prices being affected by global demand and supply, the price and value does not reflect the economic growth of this nation. Hence, more often than not, it under performs the domestic economy growth. Another problem with Precious Metal is security, if they are not safely stored, then highly susceptible to theft.

Investing in Stocks can be done by the Click of Mouse or just a Phone Call, Immediate Cash and Easy Transaction.

Unlike Real Estate it is very easy to Buy and Sell Stocks in the Equity Market by having a Demat Account with a SEBI Registered Broker. So buying and selling shares is as easy as snapping your fingers. This can be done by Click of Mouse or just by a Phone Call. Unlike Precious Metals, Equity shares have the greatest advantage that the stocks purchased get directly deposited in the your Demat Account, where it is in the safe custody of the custodian and you can sell them whenever and as much as you want to sell.

Capital Gains tax advantage

One more point that goes in the favour of equity stock markets is the Capital Gains tax advantage. There is no Capital Gains tax for Long Term Investors i.e. if the investment is held for more then one year. And for the Short Term Investments of less than a year, investors have to pay only 10 % tax on the gains.

Muslims must take advantage of this benefit and invest in Shariah Compliant Stocks that would help them create wealth in the long term the Islamic way. Further, Since the Indian Economy is on a long term growth path, Muslims are suggested to invest in Shariah Compliant Stocks.