I have recently started investing into the stock market on a monthly basis and I would like to request some advice on how I approach Khums?
As an illustrative example let’s say I made an initial lump-sum investment of say £2000 that I had already paid Khums on. I now invest a fixed amount per month into the stock market (for e.g., lets say £100 per month) so at the end of the Khums year I have invested a further £1200 into the stock market. So total investment is £3200 (£2000 has Khums paid on it & £1200 does not have Khums paid yet) - the Market Value of the total could be higher or lower than the total investment. Do I pay Khums on the amount I invested per month? Or do I pay Khums on the market value of my investment that is above £2000 on my khums date? What would be the best way to approach this? I hope my query makes sense!
1. Investing in the stock market is allowed as far as you avoid the shares or bonds of unlawful business like usury, alcohol, sinful films, gambling etc.
2. Khums is obligatory on your wealth on the your date of Khums. You must calculate the real market value of your stocks on your date of Khums.
Wassalam.