What is Halal Investing?

Halal investing refers to investments made in securities which conform to Islamic principles. When these investments adhere to the guidelines of a trustworthy Sharia advisory board, they are considered to be Sharia-compliant.

Frequently Asked Questions

We have a client minimum of $1,000 our Express Service.

We have a client minimum of $100,000 for our Access Service. Please note that this can include various accounts. For example, you may have a rollover IRA, a joint account and education savings accounts that all total $100,000 or more. Our advisors look forward to working with you to achieve your financial goals!

We charge a flat management fee which ranges between 0.40% to 1.50% per year depending on the amount of assets being managed and level of service. Unlike many other advisors, we do not make commissions from trading or from mutual fund companies. At ShariaPortfolio, you can rest assured that you’ll receive unbiased expertise.

ShariaPortfolio uses reputable custodians, such as TD Ameritrade, to hold your portfolio. Clients have 24/7 access to their accounts with no long-term commitments. Your money will be managed according to your objectives, risk tolerance and preferences.

The Sharia guidelines are based on the rules determined by the Sharia board of AAOIFI and are as follows:

Asset classes

Only stocks and Islamic ETFs are eligible for Shariah-compliance consideration. Preferred shared are considered to be non-compliant.

Business activities screens

Companies are only to be considered compliant from a business perspective if the cumulative revenue from non-compliant activities and non-operating interest income does not exceed 5% of their total income. Non-compliant income sources include the following:

  • Alcohol
  • Gambling
  • Tobacco
  • Adult Entertainment
  • Pork Products
  • Hotels
  • Cinema/Broadcasting
  • Music
  • Defense
  • Interest Income
  • Conventional Insurance Companies
  • Conventional Financial Services

Financial screens

The following screens have to be fulfilled to ensure Sharia-compliance according to the defined rules:

  • Interest-bearing debt divided by 12-month average market capitalization should be less than 30%
  • Cash, cash equivalents and short-term investments divided by the 12-month average market capitalization should be less than 30%
  • Cash, cash equivalents and receivables divided by total assets should be less than 30%
  • Cumulative revenue from non-compliant activities and non-operating interest income should not exceed 5% of total income

We rely on IdealRatings which is the global market leader in screening equities based on a hybrid research-based screening approach employing state-of-the-art technologies as well as manual research to identify Sharia-compliant equities in an accurate and timely manner. IdealRatings research-based data is audited, approved and used by Sharia scholars in more than 10 countries globally.

Global equities are screened by IdealRatings based on the Sharia rules defined by the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI), a global Islamic finance standards setting body, governed by an international panel of highly respected Sharia scholars.

You can think of mutual funds as products being offered by investment companies. Financial advisors offer a service whereby they help investors by managing their investments which may include mutual funds and individual stocks. ShariaPortfolio offers a comprehensive solution to investing that includes a variety of Sharia-compliant stocks and mutual funds.

Yes. We’re pleased to offer you a fully customized solution for your investment needs through our Access level service. You can request that we add a stock or fund to your portfolio at anytime. We can offer you our opinion and you can make the final decision on adding it to your portfolio.

ShariaPortfolio, Inc. is an investment advisory firm registered with the Securities and Exchange Commission. Founded in 2003, Virji Investments, Inc. created the ShariaPortfolio brand. After years of success and growth, ShariaPortfolio became a separate corporation in 2014. The firm now has clients in over 20 states nationwide.