In the recent past, we have seen a number of Halal Investment Management companies failing. In this article, we will analyze the causes of failure by our business expert Mohammed Faiz, who is an Engineering Graduate, MBA, Law Graduate and Trained Team Management & Leadership Professional who has worked in the position of National Head with well known MNC’s.
There are three main reason’s for the failure of Halal Management Companies. (i) Investment Structure (ii) Organisational Structure (iii) Investor Education
1. Investment Structure:
Most of the Halal Management companies unfortunately follow the same conventional interest based structure. Though the name Halal is coined, the structure of returns is much similar to the interest based business. The investors are paid a monthly returns of fixed value or slightly variant value.
How Halal Capitals is different : We share profits based on the ration of 70% : 30% ratio. While 30% of the profits are taken by the company, 70% of the profits are distributed among the investors.
2. Organisational Structure:
The organisational structure of investments is dubious. The investor just invests the money and doesn’t know where exactly the money is being invested. Thus blindly trusting the company.
How Halal Capitals is different: For investments above Rs. 2 lakhs, we register the business on the investor name and manage the business, thus giving the total control of assets and management to the investor.
3. Investor Education:
Investments are a long term journey, the investors have to be educated on this. Most of the companies, ignore the aspect and fail to help the investors understand the importance of patience in business.
How Halal Capitals is different: We regularly update investors about the status of investments. We help them understand the importance of patience in order to get proper benefits from the investments and do not set higher expectations.
About Halal Capitals Management Policy:
Though Halal Capitals is a startup in the field of Halal Investment Management. Our business policy is to manage long term investments and reasonable profits. Our first priority is to ensure, that the investor’s money is safe and if it’s in a larger scale, the investor gets access to the total assets and management of the money by owning his own business. Our model is a quite practical, safe and Islamically correct way of doing business.
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