Guides · Global
Zakat on Stocks & Mutual Funds: Market Value Method
Include shares and equity funds in your Zakat base — broker exports, NAV pricing, FX for foreign holdings, and trader vs investor nuance.
Equity holdings are one of the largest modern Zakat line items for professionals. The usual approach is to include the market value of shares you own if they function as zakatable wealth or trade goods.
Keep this practical: value fairly, screen if required by your scholar, and avoid double-counting with mutual funds that already hold the same stocks.
02Market Value on the Due Date
List each holding × closing price near your Zakat date, in your Zakat currency. Include cash in the brokerage account.
03Investor vs Active Trader
Some methodologies differ for long-term investors versus active traders (who may treat holdings more like inventory). Follow one recognised method consistently.
04Harām Income Screening
If your scholar requires purification of non-compliant earnings inside a stock, that purification is separate from the 2.5% Zakat calculation — do not confuse the two percentages.
05What to Exclude or Handle Carefully
- Unvested employee stock still not owned
- Shares you sold before the due date (cash remains if unsaved)
- Funds already counted under mutual-fund Zakat
06Worksheet Habit
- Export holdings CSV on the due date
- Convert foreign stocks with same-day FX
- Add dividends sitting as cash
07Final Thoughts
Your brokerage statement is your friend. Price the portfolio, apply your school’s method, take 2.5% when above nisab, and keep screening obligations distinct.
Key takeaways
- Value stocks at fair market price on the due date.
- Include idle cash in brokerage accounts.
- Keep purification screening separate from Zakat rate.
- Do not double-count stocks already inside funds you assessed.
Frequently asked questions
Penny stocks with no liquidity?+
Discuss fair value with a scholar if the market price is not realistic to realise.
Index funds?+
See mutual funds guide — usually value the units you own.
Short positions?+
Complex — seek specific guidance.
Joint demat with spouse?+
Split by ownership share.
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