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Zakat
زكاة
The obligatory annual charitable contribution on wealth above the nisab threshold.
Zakat is one of the five pillars of Islam. On investments, zakat is typically calculated at 2.5% of your net zakatable assets if they have been held for one lunar year and exceed the nisab (equivalent to approximately 85g of gold).
Islamic perspective
Investment assets, including ETFs and stocks, are zakatable. Some scholars differ on the exact calculation method. Consult a scholar or use a dedicated zakat calculator for your specific circumstances.
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