Shariah-compliant investing

Transcript

What Hira says, in Roman Urdu, with the English translation beneath each line.

1. 0:04Assalam-o-Alaikum, welcome to danioPSX. Aaiye seekhein, financial independence ke liye.Assalam-o-Alaikum, welcome to danioPSX. Let's learn, for financial independence.
2. 0:14Ye hai lecture number twenty-one. Aaj hum Shariah-compliant investing seekhenge: PSX stocks ki Shariah screening kaise hoti hai, KMI-30 index kya hai, aur dividend purification kaise karein.This is lecture twenty-one. Today we learn Shariah-compliant investing: how PSX stocks are screened for Shariah, what the KMI-30 index is, and how to purify dividends.
3. 0:34Islamic finance mein share ka matlab ek asal business ka hissa hai, profit aur risk dono mein shareek. Ye lending se zyada partnership ke qareeb hai. Ye general education hai, religious ruling nahi.In Islamic finance a share means owning part of a real business, sharing in both profit and risk. That is closer to partnership than to lending. This is general education, not a religious ruling.
4. 0:51Masla tab hota hai jab business khud jaiz na ho, jaise sharab, jua ya interest wali banking. Ya company bohat zyada interest wala qarz le, ya interest se kamaye.The problem comes when the business itself isn't permissible, like alcohol, gambling or interest-based banking. Or when the company borrows heavily at interest, or earns from interest.
5. 1:05PSX har listed company ko six tests se screen karti hai. Business halal hona chahiye, interest wala debt total assets ke thirty-seven percent se kam, aur non-compliant income five percent se kam.The PSX screens every listed company with six tests. The business must be halal, interest-bearing debt below thirty-seven percent of total assets, and non-compliant income below five percent.
6. 1:21KMI-30 index PSX ki thirty sab se badi aur liquid Shariah-compliant companies track karta hai. KMI All Share index mein har wo company hai jo screen pass kare.The KMI-30 index tracks the thirty largest and most liquid Shariah-compliant companies on the PSX. The KMI All Share index has every company that passes the screen.
7. 1:33danioPSX ki is guide mein KMI-30 ki poori list hai, sector aur one-year change ke saath. Conventional banks is mein nahi hain, kyunke unka business interest par hai.This danioPSX guide has the full KMI-30 list, with sector and one-year change. Conventional banks are not in it, because their business is based on interest.
8. 1:49Yaad rakhein, ye list badalti hai. PSX KMI-30 ko aam taur par saal mein do dafa recompose karti hai. Buy karne se pehle hamesha PSX ki latest list check karein.Remember, this list changes. The PSX usually recomposes the KMI-30 twice a year. Always check the latest PSX list before you buy.
9. 2:02Invest karne ke do tareeqay hain. Khud KMI stocks khareedein, ya Islamic mutual fund lein, jahan Shariah board screening aur purification aap ke liye karta hai.There are two ways to invest. Buy KMI stocks yourself, or choose an Islamic mutual fund, where a Shariah board does the screening and purification for you.
10. 2:16Compliant rehna hai to interest wali margin financing aur short selling se bachein. Kuch brokers Islamic account bhi dete hain jo non-compliant stocks block karta hai.To stay compliant, avoid interest-based margin financing and short selling. Some brokers also offer an Islamic account that blocks non-compliant stocks.
11. 2:29Compliant company ki bhi thodi income non-compliant ho sakti hai. Is liye dividend ka utna hissa charity mein dein. Formula: dividend received, multiply non-compliant income divided by total income.Even a compliant company may have a little non-compliant income. So give that share of the dividend to charity. Formula: dividend received times non-compliant income divided by total income.
12. 2:46Misaal: five thousand rupay dividend mila, aur company ki non-compliant income two percent hai, to hundred rupay charity mein dein. Zakat alag sawal hai, us ke liye scholar se poochein.Example: you got five thousand rupees in dividends and the company's non-compliant income is two percent, so give one hundred rupees to charity. Zakat is a separate question; ask a scholar about it.
13. 2:59To aaj humne seekha: Shariah screening ke six tests, KMI-30 aur KMI All Share index, aur dividend purification. Homework: KMI-30 ki list kholein aur dekhein kaun se sectors sab se zyada hain.So today we learned: the six Shariah screening tests, the KMI-30 and KMI All Share indices, and dividend purification. Homework: open the KMI-30 list and see which sectors appear most.
14. 3:17Next lecture mein hum seekhenge watchlist, portfolio aur price alerts kaise banayein. Video achi lagi ho to subscribe karein. Ye sirf education ke liye hai, investment advice nahi. Allah Hafiz!In the next lecture we'll learn how to set up a watchlist, a portfolio and price alerts. If you liked the video, please subscribe. This is for education only, not investment advice. Allah Hafiz!