
What are Halal Investments?
Halal is an Arabic word that relates to something being lawful or permitted. It is a common word among Muslims to define approved practices.
Halal investment is an inclusive option for anyone to invest in, especially Muslims who consider certain social welfare and moral standards when investing.
Interestingly, this form of investment has existed since the 7th century. But only started to experience formalization in the 1960s. Another interesting part is that the entire halal finance industry hovers around a $2 trillion valuation!
In this article:
- What are Halal Investments
- Types of Halal Investments
- Halal Investments with Cowrywise
- How to set up a halal investment plan
Types of Halal Investments
The major types of halal investments are:
- Sukuk Bonds
- Ijarah
- Murabaha
- Halal equity funds
How do you earn returns on Halal Investments?
The principle of halal investment is zero-interest. However, you can earn returns through Sukuk bonds, Ijarah and halal equities. Its earning philosophy focuses on profit and loss sharing, not the outright charge of interests.
Sukuk Bonds
These are similar to regular bonds–long-term loans. But under a Sukuk arrangement, the lender does not own a certificate that guarantees periodic payment with interest. Rather, they own a part of the asset and gain from the earnings of the asset.
Let’s break this down further. If a regular $10 million bond is issued to build an airport at 10% for 10 years, the borrower is obligated to pay (with the agreed interest) whether the airport makes money or not. On the other hand, a Sukuk investor (the lender) gets part payments of the $10 million–every year–without any interest. They only gain if the airport makes money–because they own a part of it.
A key advantage of the Sukuk is that it encourages the fair allocation of returns. However, the downside is Sukuk bonds are limited in number. Since they must have an underlying asset for investors to own a part in, they can’t be issued easily like regular bonds.
Ijarah Investments
In basic terms, this simply means rental income. The owner of an asset–say a building–transfers the rights to another party for an agreed fee over a period of time. For example, an ijarah arrangement was set up to build a shopping complex. The investors only earn from the fixed rental charge.
Halal Equities
Assume you have a personal rule not to eat cakes. It definitely won’t feel right investing in a cake business. Halal equities exist to cater to such principles. Only screened businesses get invested in. A common one is to avoid investing in firms that produce alcohol.
Halal Investments with Cowrywise
The above investment options come at really high prices, and they are also hard to acquire–premium deals. Thankfully, with the help of fund managers, that manage halal mutual funds you can gain from these investments. Currently, we have four of such funds on Cowrywise:
- ARM Ethical Fund
- Lotus Halal Fixed Income Fund
- Lotus Halal Investment Fund
- United Capital Sukuk Fund
» Already have an account? Log in to check the top Halal Funds here
New here?

How to set up a Halal Investment plan
- Signup here
- Login and tap “Actions”
- Select “Invest in Mutual Funds”
- Choose your preferred halal fund
With these offerings and many other investment options, we make sure you keep your money working–regardless of your faith. Start investing today.
Watch this video to learn more about how to have a Halal account on Cowrywise:
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It like I forgot d my password.
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You probably should request a password recovery mail.
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Thanks!
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Our regular plans are great.
I made a transfer from my stash to my bank yet no credit
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Hi Prosper.
Kindly send an email to support@cowrywise.com to rectify this.
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Thanks
Thanks for the advised Mr Ope
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Hello Admin
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Hello Ayo, thanks for your patience. Please send an email to support@cowrywise.com.
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Why is it taking tikme for your customer representatives to reply.. i Have credited the providus account provided and still my balance in does not reflect in my Plan
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i have had savings issue for a long time …..but ever since i joined cowry…everything changed
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Pls I could access my bvn hope no problem. Is say we couldn’t validate Ur bvn
I could nt access my bvn it tell me we couldn’t validate Ur bvn
Hi there. If this is still pending, you can settle all BVN issues through details in this link:
https://intercom.help/cowrywise/en/articles/3711418-got-concerns-about-your-bvn
What is the title of the book?
I have read the book and been applying it’s principles ever since. It’s one of the best I have read so far. Thanks for recommending it again.
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You’re welcome.
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Thank you! ???
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Thanks for reading, Joye! ??
What is the interest rate in the simple investment plan?.
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I have a question which I don’t want to ask here.
Awesome! Glad it helped, Alex.
Please send a mail to support@cowrywise.com to ask or send us a DM on any of our social media handles.
Read this book sometime in the past, basic and true. Thanks Ope for the enlightening reminder.
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Read this book 3times before and each time I open it its like something new is discovered.
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You’re welcome!
Ope, great job. Just started using cowrywise say, a month back. But, for this short time, your regular updates regarding investments have always reminded me of why I should step up my game on my savings habit. Thank you for all you do and still doing to help and support cawrywise clients or investors. We look forward to steady and regular updates on all that cowrywise do. Thumbs up to you all. Cheers!
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Thank you!
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Security is important, and hence our proactive approach to security of savings through our Trust structure that allows all assets to be held by our trustees on behalf of savers.
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This book continues to create an awareness of principles for wealth creation . Thank you ope
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I’m new to cowrywise.. please I need more enlightenment so as to share with family and friends..
Thanks
Inspiring.