The risks involved in Shariah-compliant investments is determined by several factors, similar to conventional investments. Both Shariah-compliant and conventional investments need to be evaluated using the same risk management techniques, such as analysing the business plan, commercial viability of the project, the track record of the issuer, industry risks, and macroeconomic factors. However, for an investment to be qualified as Shariah-compliant, there is an additional level of analysis required to ensure that the businesses seeking funding adhere to the principles of Shariah. This extra layer of scrutiny ensures compliance with Islamic values but does not inherently increase the investment risk compared to conventional investments.
Last Update: 22 July 2024
Investing in Equity Crowdfunding entails risk as companies might not thrive and could face failure.
There's a potential for partial or complete loss of your investment, and lack of liquidity in Equity Crowfunding may means ease of selling your shares may be limited.
Please read the full Risk Warning Statements HERE