FAQs

Question

How is the Dividend based purging calculated

Answer

Under this method, generally followed by S&P, MCSI and FTSE Shariah Indexes, the purging of impure income is primarily linked to dividends. The purging amount is calculated by multiplying the dividend received on the shares of the company held by the investor (whether individuals, institutions, or funds) by the ratio of impure income to the total income of the company