Investing in accordance with Islamic principles
Halal Investing
Halal investing adheres to Islamic principles and involves investing in companies that align with these principles. Many traditional investment products do not comply with these principles. For instance, earning profits from debt is not permitted, which means that bonds and GICs are not suitable for observant Muslims. Additionally, halal investing prohibits investments in businesses engaged in specific activities such as alcohol, tobacco, gambling, pork, weapons, and others.
In contrast, Primestartrades portfolios utilize fixed income instruments like bonds to reduce overall portfolio risk, making them suitable for balanced and conservative investors. However, Islamic investing principles exclude fixed income from the equation, resulting in the Halal Investing portfolio consisting entirely of equity investments. Equity investments are inherently more volatile than fixed income, making the Halal Investing portfolio better suited for those seeking a higher-risk growth-oriented investment strategy.