Compound interest is Haram. Stock market is volatile. What do I do? Don’t say “do business” . . . b/c I have never heard that advise before

[misty75]

I was schooled that compound interest is Haram. I put a portion of my savings from college in stocks. The return is very little, and I also lost quite a bit of money. How do we compound our wealth by following Islamic rules? It’s just hard for middle class students like us who save up 8K-10K during university by holding multiple jobs to have a way to invest with proper returns. Does anyone have alternative resources that I can read up on other than stocks and business?

 

[anna24]

@misty75 I would suggest buying stocks that have good dividend returns and are halal. For example Home Depot stock gives back 4-5% on average in dividends to their investors and its in a halal industry. There are alot of other stocks that offer good returns as well such as oil companies, etc. Its not easy trying to stay away from all the haram opportunities but I hope Allah will make it easy for you!

 

[katescrima]

@misty75 Have a diversified portfolio.
Use a wealth advisor or an App that allows you to hold different asset classes to hedge your volatility.
For example Wahed has a low risk portfolio which has more gold and real estate exposure and less stocks. So you can invest in that and get a decent return with much less volatility.

 

[natalie223]

@misty75 What is a good return ? Just wondering what your expectations are