Purification Calculator

About Purification

Purification is an essential aspect of Halal investing. It involves the donation of income earned from any unintended and unacceptable business activities by companies in which a shareholder is invested. Although Azzad follows strict guidelines when investing for clients, we advise them that it is possible to unintentionally earn small amounts of income that is deemed prohibited (e.g., interest income). It is important that clients give away this income in order to purify their accounts. Think of purification as carbon offsets for your investments.

To assist clients in determining these amounts so that they may take steps to cleanse their accounts of such money, we provide purification totals on a per share basis. Purification amounts are provided using the calculator below. Please note that figures for the Azzad Ethical Fund are available dating back to September 28, 2005. Data for the Azzad Wise Capital Fund is available since the Fund’s inception date.


To ensure correct calculation, please select dates from the drop-down calendar or follow this format: YYYY-MM-DD

Unintended Income

Many publicly held companies derive a small portion of earnings from impermissible sources. This could be income an otherwise permissible investment like a technology firm has earned in an interest-bearing bank account. Or a secondary business activity like alcohol or adult entertainment offered by airlines or the hospitality industry. Shareholders should not intend to benefit from this income. Rather, they are advised to give it away in order to offset any harm stemming from the impermissible business activity. As such, purification totals are calculated for the companies held by the Azzad Funds.

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Note: Purification is a cleansing process that accounts for the income of investments that may be generated from unlawful activities according to the Accounting and Auditing Organization for Islamic Financial Institutions (AAOIFI). Although Azzad follows strict Shari’ah-based AAOIFI guidelines when investing, we advise shareholders to cleanse any small quantities of illicit income that may have been earned by a company (such as interest). Account owners should eliminate such amounts by donating them to charity and should not benefit directly or indirectly from these donations. Azzad calculates purification and accrues it daily, using the following inputs*:

  1. Number of each security’s shares
  2. Net income per share for each security
  3. Number of days held for each security

Azzad provides only purification calculation figures. It is the shareholder’s responsibility to disburse the amount of purification to their preferred charities or recipients. Purification calculation figures are conservative estimates (khars, in Arabic) and may not be the exact amounts of income earned from business activities deemed to be inconsistent with Azzad’s Ethical & Shari’ah Guidelines. Azzad shall not be liable for the inaccuracy of such amounts. Purification is not required to be paid from the exact account on which purification is assessed. It may be paid in kind from any money shareholders have in checking and/or savings accounts. Clients bear all liability for any taxes and/or penalties that may be incurred when money is withdrawn from an account.

Azzad Asset Management does not provide tax advice. Shareholders should consult with a tax advisor to discuss any tax consequences that may result from liquidating or distributing an account.


The Fund is non-diversified and may invest a larger percentage of its assets in fewer companies exposing it to more volatility and/or market risk than diversified funds. The Fund may not achieve its objective and/or could lose money on your investment in the Fund. Stock markets and investments in individual stocks can decline significantly in response to issuer, market, economic, political, regulatory, geographical, and other conditions. Investments in mid-cap companies can be more volatile than investments in larger companies. Investments in growth companies can be more sensitive to the company’s earnings and more volatile than the stock market in general. Because the portfolio may invest substantial amount of its asset in issuers located in a single country or in a limited number of countries, it may be more volatile than a portfolio that is more geographically diversified. See the prospectus for more details about risks.
Investments in smaller and medium sized companies involve additional risks such as limited liquidity and greater volatility. Investments in debt securities typically decrease in value when interest rates rise. This risk is usually greater for longer-term debt securities. Investments in lower rated and non-rated securities present a great risk of loss to principal and interest than higher rated securities.
Securities of medium-sized companies tend to be more volatile and less liquid than those of large companies, may have underperformed the securities of large companies during some periods and tend to have a shorter history of operations than large companies. Growth securities may underperform other asset types during a given period. International investments involve special risks, including currency fluctuation, lower liquidity, different accounting methods and economic and political systems, and higher transaction costs. These risks typically are greater in emerging markets. The Fund may not achieve its objective and/or could lose money on your investment in the Fund. Stock markets and investments in individual stocks can decline significantly in response to issuer, market, economic, political, regulatory, geographical and other conditions.
* Previously known as Azzad Ethical Mid Cap Fund.
Portfolio characteristics including holdings, sector allocation, and risk measurements are for illustrative purposes only and may change without prior notification. Portfolio characteristics are intended to provide a general view of the entire portfolio at a certain point in time. Characteristics are calculated using information obtained from various data sources.
The Midcap Growth Index measures the performance of the mid cap growth segment of the U.S. equity universe. It includes those Russell Mid Cap Index companies with higher price to book ratios and higher forecasted growth values. The index is unmanaged and an investment cannot be made directly in this or any other index.
The services and products described on this website are intended to be made available only to persons in the United States. This website should not be considered a solicitation or an offering of any of the Azzad Funds to investors residing outside the United States or where prohibited. Azzad only transacts business in states where it is properly registered or notice filed, or excluded or exempted from registration requirements.
Azzad Asset Management is an independent investment advisory firm and adviser to the Azzad Funds. The Azzad Funds are described in a prospectus which contains more complete information about the Funds, including management fees and other charges and expenses.