By Irshad Mushtaq
In Islam, insurance and earning money from bank interest are considered haram, or forbidden. Yet, despite this, many people still find themselves pouring their hard-earned money into fixed deposits and insurance schemes. It’s perplexing and rather frustrating to see this confusion still persist. Why do so many continue these practices even though they are haram and often don’t yield the best returns?
The simple reason is a heartbreaking lack of proper evaluation and understanding. Financial decisions are too often driven by emotions rather than by informed judgment and objective education. We see our loved ones investing blindly, trusting in luck rather than knowledge, and it’s painful.
When these investments fail—when hard-earned savings evaporate—it’s not bad luck to blame but the lack of understanding. This cycle of misfortune can be broken; it must be broken with education. Knowledge is the beacon that will lead us to safer shores. Once we truly comprehend the world of finance, earning becomes a natural consequence of our wise choices.
To safeguard our future and ensure financial well-being, we need to become familiar with various asset classes. From Shariah based quality share portfolios to Term Funds (TFs), and Systematic Investment Plans (SIPs) in mutual funds, to the broader options of index funds, sector-specific funds, and hybrid funds. Each of these has a place in a sound financial strategy.
But sometimes, even this can feel overwhelming. This is where a trusted financial consultant becomes crucial. Paying for sound financial advice is not just an expense—it’s an investment in our future security and prosperity. Imagine the peace of mind that comes from knowing your advisor truly prioritizes your needs, offering tailored advice without deceit. Trust cannot be bought, but when you find an advisor who genuinely cares about your financial health, seize that opportunity with both hands.
Education is the cornerstone of sound investing. We must learn first, then earn. And for those of us seeking to adhere to Islamic principles, why not seek Shariah-compliant options? In India, there are suitable alternatives like Tata Ethical Fund and Nippon AMC ETFs that align with our faith, offering an honest and effective path to financial stability.
So, let us educate ourselves, trust in genuine advisors, and choose investments that honor our principles. In doing so, we’re not just securing our financial future—we’re staying true to our values and beliefs. Remember, knowledge comes first; earning will surely follow.
Conclusion
In Islam, practices like insurance & bank interest are considered haram, yet many overlook this in pursuit of perceived security. This confusion stems from a lack of education & understanding about finance.
Many invest blindly, driven by emotions rather than informed choices. When investments fail, it’s not luck that fails us; it’s our lack of knowledge. We need to familiarize ourselves with diverse asset classes—stocks, mutual funds, and more—and seek trusted financial advisors.
Education is the key to breaking this cycle. Learn first, then earn!
- Learn from the insights of @IrshadMushtag, writer, investor, entrepreneur & Founder of MI Securities! Connect for valuable financial advice at [email protected]
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