What You Should Know About Wahed Halal Investment

Wahed Halal Investing Platform

Wahed Invest is the world’s first automated halal investment platform that follows Sharia laws. The company is recognized as a Shariah-compliant wealth advisor by the Sharia Review Board as per the AAOIFI standards. The company is based in New York, and currently, it has offices in Washington, New York, London, and Dubai. Nowadays, it offers its services for 130 countries appealing to the 2 billion Muslims around the world.

The platform screens investments for interest, securities, as well, as high debt. The investments in Wahed do not involve alcohol, gambling, or tobacco industries, nor do they earn excess profit from charging interest. Particularly, the platform invests in Islamic bonds, stocks, real estate, and gold. The Robo-advisor ensures that all processes and contracts are in line with Islamic ethics. Furthermore, an ethical review board strictly controls and observes investments in Wahed to make sure they comply with Islamic values. According to Islamic practices, Wahed does not agree to invest in companies if the interest income is greater than 5%. Moreover, investments in this Robo advisor must acquire a certain percentage of non-liquid assets.

In addition, 3 Islamic Finance Scholars, Shaikh Muhammad Ahmad Sultan, Mufti Faraz Adam Hanif, Shaikh Dr. Aznan Hasan, approve securities, systems, and technologies at Wahed Invest. 


How Wahed Works

If you want to be a halal investor, you first need to respond to several questions such as investment goals, time horizon, and risk comfort levels. Managers build your customized portfolio and offer the best return options involving the least amount of risk after reviewing your answers.

Depending on your agreement on risk levels, your portfolio-nature can be: 

  • Very conservative
  • Conservative
  • Moderate
  • Moderately aggressive
  • Aggressive
  • Very aggressive 

What do these categories mean? For instance, a very conservative portfolio can consist of 15% equities, 72.5% fixed income, 5% gold, 5% REIT and 2.5% cash. 

Of course, your portfolio can be rebalanced depending on several factors. For example, you can rebalance your account if the market is volatile or there is a significant deviation between the actual return and the client’s expected return rate. Moreover, the below situations might also be a reason to rebalance the account:

  • As an investor, you want to change your goals,
  • or you may want to change your risk category.
  • If the investor wants to add or remove any securities from the account.

So far, Wahed Halal Investment portfolios are found to be working better- with less risk than other traditional investing platforms. However, Musaffa could be an alternative for your investment decision.

Musaffa Halal Investment Platform

Musaffa, a New York-based Fintech company also provides halal investment services. While Wahed is a Robo-advising platform, Musaffa offers a fully halal trading platform. Currently, Musaffa is developing its halal trading investment platform. What is more, Musaffa plans to expand worldwide. That is, it will soon be covering stocks from all over the world. Unlike Wahed Invest, Musaffa has stock screening services that provide reports about the USA, Malaysian and Indonesian stocks. Moreover, it runs a blog academy where you can learn about Islamic Finance and Halal Investment at no charge. It also provides a community forum where Muslim Investors can discuss different topics. Feel free to sign up Musaffa to learn about Islamic Finance and make smart halal investing decisions.

To read more about Islamic Finance related topics, please click here and visit our academy.

Feel free to sign up for our free stock screening services at musaffa.com.