Building a Halal Portfolio
A well-constructed halal portfolio follows these principles:
1. Diversification — Spread across sectors (IT, pharma, consumer, industrial) and geographies (India, US, UK).
2. Quality Focus — Prefer companies with low debt, strong cash flows, and consistent earnings.
3. Regular Screening — Re-screen your holdings quarterly as financial data changes.
4. Purification — Set aside purification amounts from dividends.
5. Zakat — Calculate and pay zakat annually on your portfolio.
6. Research — Use tools like Barakfi to compare compliance across methodologies before investing.