Eth­i­cal in­vest­ing op­tions

Finweek English Edition - - COVER -

Sharia in­vest­ing

Like other in­vestors, Mus­lims look for a di­ver­si­fied mix of in­vest­ment prod­ucts to add to their port­fo­lios; how­ever, they are re­stricted by Sharia, or Is­lamic law. Ac­cord­ing to this law, Mus­lims must eval­u­ate a com­pany’s busi­ness ac­tiv­i­ties and fi­nan­cial records to de­ter­mine where its pri­mary rev­enue comes from and how in­come and ex­pen­di­tures are man­aged. This in­for­ma­tion al­lows them to de­ter­mine if the in­vest­ment is ha­laal, or ac­cept­able. If not, the in­vest­ment is haram, or un­ac­cept­able. Haram ac­tiv­i­ties in­clude the man­u­fac­ture or mar­ket­ing of al­co­hol, gam­bling or gam­ing ac­tiv­i­ties, con­ven­tional fi­nan­cial ser­vices, pork and pork prod­ucts and pornog­ra­phy. In ad­di­tion, if a com­pany’s in­ter­est-based prof­its or hold­ings ex­ceed cer­tain lim­its, then in­vest­ing in the com­pany is for­bid­den.

Cru­elty-free in­vest­ing

Ac­cord­ing to the Peo­ple for the Eth­i­cal Treat­ment of An­i­mals (Peta), cru­elty-free in­vest­ing en­sures the in­vest­ment only in com­pa­nies, mu­tual funds, bonds, and other in­vest­ment ve­hi­cles that do not sup­port, cause, or con­trib­ute to animal ex­ploita­tion and suf­fer­ing, in­clud­ing the de­struc­tion of nat­u­ral habi­tats. Most com­monly, in­vestors elim­i­nate the com­pa­nies that test prod­ucts on an­i­mals from their port­fo­lios. Al­ter­na­tively, some in­vestors choose to se­lec­tively in­vest in the com­pa­nies that have agreed to ban test­ing on an­i­mals per­ma­nently.

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