Being a muslim i know challenges of investing in stock market according to shariah law and it makes very much complicated the entire process however indian stock market is ocean of opportunities which can be cashed but muslims face a major problem how to choose stocks which is fit according to shariah law aka islamic law , Shariah law prohibit to invest on those companies whose main source of income is interest or any other prohibited item like alcohol . So here i am making a list of stocks which fit code of shariah and you can invest easily without worrying about anything and they are not penny stock nor 2nd grade stocks , all stocks are one of the best in their segment and you may make your portfolio by accumlating them .
1 – Larsen & Tubro ( L&T ) : My all time favorite indian company is a giant in infrastructure and it has other 40+ business including energy , finance , and software . Major income of this company is from projects which include metro stations and major skyscrapers , Its finance business is listed seprately so you may rest assured its safe company to investment according to shariah law .
Cmp : 1820
2- Maruti Suzuki : An automobile company , India’s biggest auto company and its one of the oldest automobile company of india , with its new lineup its going to be great for next 5-10 years . However its currently very expensive so better wait for sometime to start investing in this company , wait atleast 10-15% correction before any investment .
3- Hindustan Unilever : Major giant in indian cosumer product , it needs no introduction its major business is from consumer products and it has good product in food as well but again it has become a bit expensive but keep an eye on it .
Cmp : 900
4- Idea Cellular : Another good company with backing of aditya birla group which guarantee it has deep pockets to survive in cut throt indian cellular market .
Cmp : 166
5- Reliance : Does it need any introduction ? Currently its trading at very lucrative price and it has 4G plan on its way which will diversified its plan from Refinery and retail to broadband business .
Cmp : 970
Above 5 companies are fit according to Shariah law ( Islamic law ) to invest safely however if you cant or dont want to invest directly in market there is a mutual too for your need .
Tata Ethical Fund : A fund which invest in stock market according to shariah law compliant equity and its a safe bet to those who do not want to face direct volatility of equity market . It has given solid returns in last 10-15 years , SIP would be recommend way to invest in any mutual fund including this .
Current NAV : 136 ( Growth )
Will post regarding other Mutual funds soon