How to Invest in a Halal way

This post is based on a comment made by a reader on the article:
Halal Tax Saving Investments in India
Sinan Suhel has the following strategy for halal investing (I have striked out some parts which I do not consider halal):

Assalam Walaykum, I liked this blog coming straight from heart. I am an IT and constantly researching from last 6 years on making my investment halal.
First thing. no matter what we think and what arguments we bring to prove it, no matter even the entire world agrees with it, no matter how many so called fatwa raised for personal gain, ALLAH's LAW REMAINS SAME and his JAHANNUM is bigger enough to accommodate those who rejects his AYATs (but remember ALLAH is most merciful).

Why we dont want haram money?
1. Allah forbids it
2. personally I am not a big fan of taking showers of fire in Jahannum for eternity for my afterlife
3. We dont want to raise our children with haram money and in the home that belongs to bank for next 20 years
4. The Zakat of haram money is rejected, you are not suppose to calculate haram money for Zakat because Allah does not accept it 
5. Hajj cannot be done by this money, its rejected
6. Sadka, Khairat or fi Sabilillah is not accepted by Allah from haram money

How can we expect barkaah in our children, wife and family members, who had been fed, clothed and raised from haram? 
How can we ignore the fact that the blood that flows in their veins, the muscles they developed, the beauty they have, all came from haram money?

WHAT TO DO?
Lets accept the fact that in india there are not too many options to invest in halal. But yet there are ways.
I agree with Fazeel and Imdad both and have came up with a good investment solution.
1. While investing in tax saving (haram) bonds, calculate the interest they are likely to give and give it to some needy on the same day you invest, THIS SAVES TAX
2. Never put money in FD, it going to reduce it if you know about inflation and tax on FD
3. Part your money into 4 equal parts
   A. Saving 
   B. Contingency 
   C. Invest in Shariah Good Mutual Funds/Gold 
   D. Invest in Mid Caps Fund 
4. Once you will reach the goal for savings (12 months of your expense) you will be able to put more in other parts
5. Now, once you have enough in B. and C., you can buy a land
6. Down the years you will be able to buy 5-6 plots from that you can sell 1-2 to get enough money to build the home on 1-2 plots
7. This way you will end up having home, decent investment, contingency funds and savings.

As far as investment in concern, there are some good MidCAP as well a Shariah funds you can look for: 
TATA ETHICAL FUND
Goldman Sachs CNX Nifty Shariah BeES

For non shariah funds:
BIRLA SunLife FrontLine (0% in debt but 20% in baking), so you can take out 20% of profit from banking allocation 

NEVER INVEST IN LIQUID, DEBT OR BANKING/FINANCE FUNDS.
I have done lots of research by the ilm and taufiq given by Allah, so if anyone wants any help regarding investment strategy or funds (not specific stocks), please do ask me and I will try, by Allah's guidance and mercy, to help my brother and sisters.

MAY ALLAH, THE MOST MERCIFUL AND THE MOST GRACIOUS, GUIDE US AND PROTECT US