What is diversification and why is it that important from both a financial & Islamic standpoint? – With Sheikh Dr Yasir Qadhi – episode 4

What is diversification and why is it that important from both a financial & Islamic standpoint?

The life of our Prophet (SAW)  and his companions manifested how important it is to have various sources of earnings and it is evident from the teachings of our Prophet (SAW) as he gave a lot of importance to the money that is earned through your own hard work and effort.He (saw) created diverse ways of income in his life from being a labourer to a business manager, a property, a farmer and a stockpiler. These are just a few of many examples mentioned in the episode.

Diversification helps to contain the risk of loss so that if one area of investment doesn’t yield returns, or yields losses, you can still breathe a sigh of relief, courtesy of your investment choices. 

 

Watch episode 4 below, in which Sheikh Dr Qadhi explains the benefits of diversification.

 

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