WealthSimple Halal Investment platform is a Canadian Robo-advisor, an online investment company that operates only in Toronto, New York and London. In 2017, the company was able to build the first Halal Investing Portfolio in Canada. Additionally, this halal investing platform is among the first to offer Socially Responsible Investing (SRI) options. Both Halal and SRI portfolios give you a chance to invest according to your values. Whilst halal portfolios follow shariah law, SRIs deal with businesses that champion environmental and social responsibility. Currently, the platform has more than 175,000+ active users.
WealthSimple provides not only low-cost, customizable, easy access to investments but also Shariah-compliant investment services. Moreover, the platform offers financial recommendations from expert advisors who can assist users in better planning towards suitable options. This halal platform invests its client’s money in globally diversified portfolios to maximize performance. It offers five types of financial services, they are investing on autopilot, cash and spend, commission-free stock trading, crypto trading, and tax filing assistance.
Wealthsimple Halal Investment Portfolio Methodology
WealthSimple includes investment securities that comply with shariah laws.
The portfolio created in WealthSimple does not work with firms that earn more than 5% of their income from impermissible activities in Islam including interest, gambling, pork-related products, weapons, conventional banking or insurance companies, and adult entertainment.
Furthermore, it checks on if the firm that it deals with has excessive debt or not. The calculation of their company’s debt ratio is from the debt over its total assets. Of course, companies that have debt ratios over 33.33% are not accepted.
How does WealthSimple work?
WealthSimple halal investment portfolio composed of 50 different stocks which are shariah-compliant. Since bonds are not allowed in Islam, no fixed income instrument is offered. That is, the risk profile defines the growth risk (i.e. aggressive).
The clients need to keep a balance between cash savings and a halal portfolio. So, depending on the user’s chosen risk profile, the portfolio may look like the following:
Conservative Investor: Cash holding 65% whilst Halal portfolio 35%
Balanced Investor: Cash holding 50% whilst halal portfolio 50%
Growth Investor: Cash holding 20% whilst halal portfolio 80%
In conclusion, you can enjoy several benefits including free expert financial advice, portfolio diversification, dividend purification, low-cost funds, and automatic deposits by using WealthSimple.
How can Musaffa help you to make your investments halal?
Musaffa is a one-stop shop for all your halal investing needs. It is Islamic trading, halal investment, and financial education platform. The platform aims to attract investors seeking to align their money with their values and faith. Musaffa helps you to invest only in halal offering Shariah-compliant securities option. The trading platform is currently in the development process.
Moreover, Musaffa also provides shariah stock screening services. It offers its basic services completely for free. The company plans to expand worldwide. That is, it will soon be covering stocks from all over the world. You can search for stocks an unlimited number of times and find out whether or not your searched stocks are halal (Shariah-compliant) using Musaffa’s stock screening service.
Besides, it currently runs a blog academy where you can learn about Islamic Finance and Halal Investment at no charge. Feel free to join the academy of Musaffa to learn about Islamic Finance to make smart halal investing decisions. Musaffa also provide Muslim Investors Forum as the place for Muslim investors to post questions, follow discussions, share knowledge about Islamic Finance, and connect with fellow Muslim investors worldwide
To read more about Islamic Finance related topics, please click here and visit our academy.
Besides, feel free to sign up for our free stock screening services at musaffa.com.