ETF investing is a smart and efficient way to grow your money. If you want to make your investments halal and Shariah-compliant, then platforms like Smallcase are a good option. Hope this blog will help you in creating your own halal ETF
An ETF is a financial product that trades on a stock exchange, just like a normal stock. The main objective of an ETF is to track a particular index or sector. For example, if an ETF tracks the Nifty 50, it will hold only those stocks that are in the Nifty 50. ETFs are considered a diversified and cost-effective investment option because:
- Diversification: You can invest in multiple stocks or bonds in a single ETF.
- Low Cost: The expense ratio of ETFs is lower than that of mutual funds.
- Liquidity: ETFs can be bought or sold on the stock exchange at any time.
How to create halal ETF on Smallcase?
Smallcase is an innovative platform that allows investors to create customized portfolios. If you want to create a halal ETF, follow these steps:
- Do research:
First make a list of companies that fulfill the halal criteria.
If you want to know about halal stocks, click here. You can also see the list of halal stocks Setup Smallcase Account:
If you do not have a Smallcase account, then it is necessary to open a Demat account first (like on Zerodha, Upstox, or Groww).
After that download the Smallcase app and link your account.Create Custom Smallcase:
Click on “Create New Smallcase” option.
Add your selected standard-compliant stocks.
Select stocks from different sectors to diversify the portfolio, like IT, pharma, and FMCG.
Allocate weightage to each stock, like 10%, 15%, etc.
Backtesting:
Check the historical performance of your portfolio. If the portfolio is giving consistent returns, then proceed.
Invest and track:
Invest in your halal ETFs and monitor them regularly.
halal ETF in india
Halal ETFs are not directly available in India, but you can invest in stocks of Shariah-compliant indices or put them in a custom smallcase
List of Halal ETF:
- Nippon India ETFNifty 50 Shariah Bees
- Nifty 50 Shariah Index (NSE)
- Tata Ethical Fund (Mutual Fund)
- Taurus Ethical Fund
Top Tips for Halal Investing:
Consult Shariah Advisory: If you are a beginner, seek guidance from a Shariah expert.
Focus on Long-Term Goals: The objective of Halal investing is not just to earn profit but also to do ethical and responsible investing.
Review regularly: Keep updating your portfolio according to market conditions.
disclaimer
It is very important to do complete research before investing in any share. Invest according to your income and risk
If you have any question or need assistance, do ask in the comments!
