How to pick Halal stocks

As you already know, for a stock to be Halal, the company should not deal with alcohol, interest among other things. As a common investor, you might not know all the criteria to decide whether a stock is Halal or not. Instead you will be tempted to go with the flow and pick most popular stocks. There are a few consultancies that specifically deal with this issue. For a fee, you can use their service to get a list of Halal stocks.

Fortunately, you do have a cost-free option. In my earlier post, I talked about various Halal mutual funds out there. You can use refer to individual mutual fund webpage where you can find the stocks that are in it. You can also use marketwatch.com or other such websites' search box to get to know what stocks are in a particular mutual fund.

Halal stock picking is not complicated

If you are interested in REIT stocks, you can find a few on Azzad's website

One point to note while picking Halal stocks is that the list is dynamic. Which means a stock which is Halal today might not be Halal tomorrow for various reasons like business model change, debt increase etc. So, its in your best interest to cross check the Halal-ness of your stocks every quarter or so.

If you know of any other tips to pick Halal stocks, do let us know.

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