Islamic Finance Blog | Modern Muslim Finance

Simplify Your Halal Investing Journey with Dollar-Cost Averaging (DCA)

Modern Muslim Finance

Published on: 08/05/2025

One of the smartest ways Muslim families in Singapore can invest with confidence is through Dollar-Cost Averaging (DCA). This strategy involves investing a fixed amount regularly into Shariah-compliant assets, regardless of market conditions. It helps reduce emotional decision-making, avoids the stress of market timing, and builds consistent investing habits over time. With DCA, you buy more units when prices are low and fewer when prices are high—potentially lowering your average cost. While it doesn’t eliminate investment risk, DCA is a practical, faith-aligned approach for growing your Halal portfolio steadily from your monthly income. When paired with strong Halal investments, it supports your path toward financial independence.

Investment

Investment-Linked Policies (ILPs): Why I Urge Caution for Muslim Families in Singapore

Modern Muslim Finance

Published on: 08/05/2025

Investment-Linked Policies (ILPs) may seem like an attractive "two-in-one" solution, offering both life insurance and investment growth. However, for Muslim families in Singapore, these products require careful scrutiny. Most ILPs are based on conventional insurance structures, which may involve elements like Riba, Gharar, and Maisir—making them non-compliant with Shariah principles, even if they offer Halal sub-funds. Beyond compliance, ILPs often come with high fees, lack of flexibility, and limited control over your investments. In contrast, separating your protection and investment—using Takaful for insurance and Halal unit trusts or ETFs for wealth-building—provides greater transparency, control, and long-term value. Always assess the structure and costs before committing to an ILP.

Investment