Question 1

How is PureInvest different from other halal investing apps?

Accepted Answer

PureInvest focuses exclusively on the AAOIFI methodology, the most widely adopted global standard, rather than proprietary or less transparent screening criteria. We also automate the purification calculation that most platforms skip, and we are building tax-ready reports so purification becomes a documented, deductible process rather than guesswork. Our goal is transparency: you can see exactly why each stock gets its compliance verdict.

Question 2

What is the AAOIFI screening methodology?

Accepted Answer

AAOIFI is the Accounting and Auditing Organization for Islamic Financial Institutions, a Bahrain-based body established in 1991 that sets Shariah standards for Islamic finance. Their Shariah Standard No. 21 governs investment in shares and uses a two-tier screening process: a business activity screen that excludes companies deriving significant revenue from impermissible industries, and a financial ratio screen ensuring interest-bearing debt and interest-earning assets remain below 30% of market capitalization. PureInvest implements this standard for automated stock screening.

Question 3

How does dividend purification work?

Accepted Answer

When you invest in a Shariah-compliant stock, a small percentage of the company's revenue may still come from non-compliant activities (typically 0.5-4%). Dividend purification calculates the exact portion of your dividend income attributable to this impure revenue and tells you how much to donate to charity to cleanse your returns. The formula is: Impure Revenue Percentage x Dividends Received = Purification Amount. This donation may qualify as a charitable tax deduction in the US and Canada, so purification is not money lost. It flows back into your community. Confirm with your tax advisor.

Question 4

What makes a stock halal or haram?

Accepted Answer

A stock is considered halal (permissible) if the underlying company passes two screens. First, its core business must not involve impermissible activities like alcohol, gambling, conventional interest-based finance, pork products, tobacco, weapons, or adult entertainment. Second, even if the core business is permissible, the company's financial ratios must meet AAOIFI thresholds: interest-bearing debt below 30% of market cap, and impure income below 5% of total revenue. Stocks that fail either screen are non-compliant.

Question 5

Is the purification amount tax-deductible?

Accepted Answer

In both the United States and Canada, charitable donations (including purification amounts given to qualified charities) may qualify as a charitable tax deduction. This means the cost of purification can be offset by tax savings. PureInvest is building tax-ready reports to help you document these amounts accurately for annual filings. Confirm with your tax advisor.

Question 6

How many stocks does PureInvest cover?

Accepted Answer

PureInvest currently covers major US-listed stocks including AAPL, MSFT, TSLA, GOOGL, NVDA, META, AMZN, and JPM. We are actively expanding our coverage to include more tickers across US and international markets. If you search for a stock we don't cover yet, you can join the waitlist to be notified when it's added.

Question 7

What is the difference between Compliant, Needs Review, and Non-Compliant?

Accepted Answer

Compliant means the stock passes both the business activity and financial ratio screens, with impure income below 5%, so it is considered halal to invest in with purification. Needs Review means the stock passes the business screen but has impure income between 5% and 33%, so a deeper analysis is recommended before investing. Non-Compliant means the stock fails one or both screens and should be avoided by Shariah-conscious investors.

Question 8

Do I need to purify my returns from ETFs?

Accepted Answer

Yes, if the ETF contains holdings with any impure income. The purification calculation for ETFs is more complex because you need to consider the weighted impure revenue across all holdings. PureInvest is working on ETF-level purification analysis to automate this process.

Question 9

How often do compliance statuses change?

Accepted Answer

Compliance statuses can change whenever a company releases new financial data, typically quarterly. A company's debt levels, revenue mix, or business activities can shift over time. PureInvest is building proactive alerts to notify you when a stock in your portfolio changes compliance status so you can take action promptly.

Question 10

Is PureInvest a financial advisor?

Accepted Answer

No. PureInvest is a screening and informational tool, not a registered financial advisor. Our platform applies the AAOIFI methodology to help you evaluate stocks for Shariah compliance, but all investment decisions should be made with the guidance of a qualified financial advisor and Islamic finance scholar. We provide data and analysis. You make the decisions.

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