The returns from Shariah-compliant investments can be diverse, ranging from modest and stable income to high-growth opportunities.
Capital Appreciation (Long-Term Growth)
Investing in Shariah-compliant ECF may provide returns primarily through capital appreciation, where the value of the shares increases over time. These investments are usually made in issuers that comply with Shariah principles, meaning they avoid industries like alcohol, tobacco, and gambling, and focus on ethical sectors such as technology, healthcare, and renewable energy.
Dividend Income
Some Shariah-compliant Issuer may pay out dividends to investors depending what type of shares that being offer. These dividends are typically derived from the profits of companies that operate in permissible (halal) industries and are distributed to shareholders as a share of profits.