Halal Stock Portfolio Management
Build and manage a Shariah compliant stock portfolio. Portfolio construction, stock screening, buy and sell recommendations, and ongoing monitoring.
Build and Manage a Halal Stock Portfolio
Stocks are one of the best ways to build long term wealth. The stock market has historically returned 7 to 10 percent per year. That is much higher than savings accounts or bonds. But investing in stocks requires knowledge. Which stocks are halal? How do you screen them? When do you buy? When do you sell? How do you diversify? How do you manage risk? Most Muslims do not have the time or expertise to answer these questions.
Our Halal Stock Portfolio Management service helps you build and manage a Shariah compliant stock portfolio. We start with your financial goals. Are you saving for retirement? For a down payment on a house? For your children education? Different goals require different strategies.
We then assess your risk tolerance. How much volatility can you stomach? Can you watch your portfolio drop 20 percent without selling in panic? If not, we recommend a conservative portfolio. If you can handle volatility, we recommend a more aggressive portfolio.
We help you select halal stocks. We screen companies using AAOIFI standards. Only companies with halal business activities and acceptable financial ratios are included. We build a diversified portfolio across sectors and geographies. We provide buy and sell recommendations. We monitor your portfolio regularly. We rebalance when needed.
We also help you with the mechanics. Which brokerage to use? How to place orders? How to track cost basis? How to file taxes on capital gains? We answer all your questions.
Invest with confidence. Invest in halal stocks. Let us help you grow your wealth.
What's Included
Portfolio Construction
We build a diversified halal stock portfolio tailored to your goals and risk tolerance. We select stocks from the Dow Jones Islamic Market or FTSE Shariah indices. These indices are pre screened for compliance. We also add individual halal stocks not in the indices if they meet our criteria. We diversify across sectors. Technology, healthcare, consumer goods, industrials. We diversify across geographies. US, Europe, Asia, emerging markets. The goal is to reduce risk while maximizing returns.
Stock Screening
If you want to select your own stocks, we screen them for you. You provide a list of tickers. We research each company. We check the business activities. No alcohol, gambling, pork, pornography, conventional finance, weapons, tobacco. We check the financial ratios. Debt below 33 percent. Interest income below 5 percent. Accounts receivable below 50 percent. We provide a clear yes or no. We also provide purification percentages for borderline stocks.
Buy and Sell Recommendations
We provide specific buy and sell recommendations. When to enter a stock. At what price. What allocation. When to exit. At what price. Our recommendations are based on fundamental analysis. We look at earnings, growth, valuation, and momentum. We also consider technical indicators when appropriate. We provide a clear rationale for each recommendation. You decide whether to follow it. We do not execute trades. You do that through your broker.
Portfolio Rebalancing
Over time, your portfolio will drift from its target allocation. Some stocks will outperform. Others will underperform. Rebalancing brings your portfolio back to target. You sell some of the winners and buy more of the losers. This sounds counterintuitive but it improves returns over time. We help you rebalance quarterly or annually. We calculate the trades needed. We provide a rebalancing checklist. You execute the trades.
Performance Reporting
We provide regular performance reports. Monthly or quarterly. The report shows your portfolio returns compared to benchmarks. The S&P 500, the Dow Jones Islamic Market, or other indices. The report shows your asset allocation. The report shows your best and worst performing stocks. The report shows your risk metrics. Volatility, drawdown, Sharpe ratio. You see exactly how your portfolio is doing. No guesswork.
Portfolio Monitoring
We monitor your portfolio continuously. We watch for news that could affect your holdings. Earnings reports, management changes, regulatory actions, competitive threats. We watch for Shariah compliance changes. A stock that was halal may become haram if the company takes on too much debt or enters a haram business. We alert you immediately if any holding becomes non compliant. We recommend what to do. Sell, hold, or purify.
How It Works
Initial Consultation
Schedule a free 30 minute call. We discuss your financial goals, risk tolerance, and investment preferences. We explain our services. We provide a fixed price quote.
Onboarding
You complete our investor profile questionnaire. You tell us about your income, assets, liabilities, and investment experience. You provide your brokerage statements if you already have a portfolio.
Portfolio Design
We design your portfolio within five to seven business days. We provide a written proposal. The proposal includes target allocation, recommended stocks, and expected risk and return metrics.
Implementation
You implement the portfolio. You open a brokerage account if needed. You buy the recommended stocks. We help you with the process. We answer your questions.
Monitoring
We monitor your portfolio. We provide regular reports. We alert you to any issues. We recommend rebalancing and adjustments.
Review
We schedule quarterly or annual reviews. We discuss performance. We update your goals. We adjust the portfolio as needed.
Frequently Asked Questions
There is no fixed minimum. You can start with as little as HKD 1,000. Many brokerages allow fractional shares. You can buy a portion of one share. For example if a stock costs HKD 1,000 per share, you can buy HKD 100 worth. This makes halal investing accessible to everyone. However diversification is harder with small amounts. You cannot buy 20 different stocks with HKD 1,000. You may need to start with one or two stocks. Or use an Islamic ETF. ETFs provide instant diversification. A single ETF may hold hundreds of stocks. You can buy one share of an ETF for HKD 100 to HKD 500. We recommend ETFs for small portfolios. As your portfolio grows, you can add individual stocks.
Active management means making specific buy and sell decisions. We analyze companies. We decide when to buy and sell. We try to beat the market. Active management has higher fees but potentially higher returns. Passive management means tracking an index. You buy an Islamic ETF that tracks the Dow Jones Islamic Market. You hold it for the long term. You do not try to beat the market. You accept market returns. Passive management has lower fees and less stress. Most investors should use passive management. Only experienced investors with significant capital should consider active management. We offer both options. We help you choose.
You need to screen the stock using the AAOIFI methodology. First, check the business activities. Does the company derive any revenue from alcohol, gambling, pork, pornography, conventional finance, weapons, or tobacco? If yes, the stock is likely haram. There is an exception for small percentages. AAOIFI allows up to 5 percent of revenue from haram activities. Second, check the financial ratios. Is interest bearing debt less than 33 percent of market capitalization? Is interest income less than 5 percent of total revenue? Are accounts receivable less than 50 percent of total assets? If the company passes both screens, it is halal. If it fails either screen, it is haram. This screening requires research. Many data providers offer pre screened lists. Zoya, Islamicly, and others. Our service does the screening for you.
Several brokerages offer Islamic accounts. HSBC Amanah offers Islamic investment accounts. They screen stocks for compliance. They offer a managed portfolio. The fees are higher but the convenience is high. Interactive Brokers offers access to global markets. You can buy Islamic ETFs on US and European exchanges. You can buy individual stocks. Interactive Brokers does not screen stocks for you. You must do that yourself. We can help you with screening. Other brokerages include Saxo Bank, TD Ameritrade, and Charles Schwab. They all offer access to halal ETFs. We recommend Interactive Brokers for active investors. We recommend HSBC Amanah for passive investors.
Dividends from halal stocks are halal. You can keep them. You should pay zakat on them if they bring your total wealth above the nisab. However some halal stocks may have a small percentage of impermissible revenue. For example a halal retail company may have a bank account that earns interest. That interest is a small percentage of total revenue. When you receive a dividend, a small portion of it comes from that interest. You should purify that portion. The purification amount is the dividend multiplied by the percentage of impermissible revenue. For example if a company has 1 percent impermissible revenue and pays a HKD 100 dividend, you purify HKD 1. Many screening tools provide the purification percentage. Our report includes it. Purification is simple. Donate the amount to charity without expecting reward.
Our stock portfolio management fee depends on the size of your portfolio and the level of service. For a passive portfolio using ETFs, our annual fee is 0.5 percent of assets under advice. For a HKD 100,000 portfolio, that is HKD 500 per year. For an active portfolio with individual stocks, our annual fee is 1 percent of assets under advice. For a HKD 100,000 portfolio, that is HKD 1,000 per year. There is a minimum annual fee of HKD 2,000. For portfolios under HKD 200,000, the fee is HKD 2,000. We also offer an hourly consulting option at HKD 500 per hour. You pay for advice when you need it. No ongoing commitment.