Top 5 Halal Investment Options in India for Ethical Returns (2025)

Top 10 Halal Investments that every Person Should Know before Investing.

1. Shariah-Compliant Mutual Funds

  • Funds like Tata Ethical Fund and Nippon India ETF Shariah BeES invest only in halal companies.

2. Shariah-Compliant Stocks

  • Invest directly in companies listed under BSE Shariah 50 or Nifty50 Shariah Index, which avoid interest-based and haram sectors.

3. Gold (Physical or Digital)

  • Buying physical gold or digital gold is halal and considered a safe long-term investment with intrinsic value.

4. Real Estate (Without Interest-Based Loans)

  • Buy, rent, or lease property using full payment or Islamic financing methods (like Ijara).

5. Halal Startups / Private Business Investments

  • Invest in small halal businesses or startups using profit-sharing models like Mudarabah and Musharakah.

6. Sukuk (Islamic Bonds) (Limited in India but growing)

  • Sukuk are interest-free Islamic bonds, where profits come from asset-based income, not interest.

7. Islamic Crowdfunding Platforms

  • Participate in halal crowdfunding for businesses or social causes via platforms that follow Shariah rules (profit-sharing, no riba).

8. Agriculture and Livestock Investment

  • Farming or livestock-based business is halal and aligns with Islamic teachings if operated ethically and fairly.

9. Islamic REITs (Real Estate Investment Trusts)

  • Although rare in India, you can explore REITs that do not invest in interest-bearing or haram properties.

10. Islamic Saving Plans / Takaful (Islamic Insurance)

  • Invest in Takaful-based savings plans (when available) that avoid interest and promote shared responsibility.