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Investment with respect, Islamic way

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Dear Intikhab, Indeed, it's good professional write up. Two things are well explained. First, Why retirement plan? And Second, each one to determine his own requirement. But, the main concern in India is to invest in Islamic Investment Products for Muslims. And on this point, I am adding my views to your article. I would advise all my bros. not to invest in any interest based Investment products including Public provident fund, Term Deposits or debt products. Having said that what alternatives do muslims have in India to invest in Islamic Way. Salim Desai, I suppose have posted his article on Islamic Finance on this website itself for the information of Kokani bros. Sometimes, in future I will dedicate one full article on this. Always think to invest as an Investor and not as a lender. Investor carries a risk and is a owner, Lender lends money and gets fixed return in the form of interest which everyone here undisputedly will agree with me that Islam does not permit that. That is calling war against Allah (s.w.t). So the best options are: (1) Invest in real estate, house property, office property which will bring rental income for your retirement (2) Buy gold ornaments for your wife, daughter as and when the gold drops (so they are happy and it keeps on building your investment portfolio-it is sort of tangible cash in your hand, provision for your daughters marriage) (3) Equity based fund, in equity markets. Now a days you can make your own Islamic based fund SIP ( dont invest in banking sector, liquor, Cinema, television companies or entertainment based cos.) You choose your companies such as real estate sector, phrmaceautical, infrastructure, power sectors etc) Take guidance from our people for selecting such cos. Like highest dividend consistingly paying cos, Book Value, PE ratio, etc. a mixed bag portfolio. Which will give capital growth as well as regular return at an average of 8%+ You can create your own SIP and ask your banker such as HDFC who charges yearly nominal fees. Each month it will deduct from your account as per your request amount an buy shares for your on pre agrred terms. (4) make equity investment for long term investment as well as for trading purposes. Always keep 30% of the portfolio in cash. This is a sound investment strategy. (5) Invest in land and develop it in village These are enough to take care of your retirement plan and to be read and followed with Bro. Chougules advice. Rest duaa Gaus Tisekar
Comments (1)
Shariah Complaint & Islamic Way - To move forward from here
1Wednesday, 02 November 2011 08:24
Intikhab Chougle
Dear Gaus Bhai,

Thank you for adding up your view to the article and I appreciate the way it has been added.

I will surely look forward to a detailed article from your end as I believe 'experience sharing' is a best methodology for learning the market practices and it helps you prepare better for your future. I am in total agreement with you when you mention the point that 'We must invest as a investor and not as a lender'.

I strongly agree with your recommendations made through point number 1, 2 & 5 but my views are slightly different when it comes to point no 3 & 4 and I have my own reasons for it which can be discussed at length in some other forum In-sha Allah.

Also I would like to add here, we are a large community, with people from many walks of life, with many talents possessed and scattered in many locations. The expertise that all our people have can be bought together on a table and the same can be used to develop products that are more 'Shariah Centric'. A Investment product developed by US, for the benefit of US and totally controlled / defined by US will be a better situation to be a part off.

I know I might be sounding too ambitious by recommending the above but somewhere we have to make a move for the benefit of our people from Konkan region. If we analyse, all of us are on different platform trying to make efforts in our own individual ways for the development of our region & our people, so why not do it through a stratergy & planned approach. The key to do this will be a transparency of activities communicated to each and every individual involved but lead by a team of selected & qualified people to do the same.

To be honest, I have liked your 5th recommendation a lot and that is something very close to our hearts. Developing Konkan and generating opportunities for Konkani brothers. Also I would like to add, in my view education still holds the key to all the success and the focus should not be lost, we must encourage the same at different levels as much as possible.

Jazzak Allah for your update and will look forward to your continues encouragement.

Duao ki Darkhwast

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