Today I’m going to share with you a very interesting investment medium, especially for Muslims. Wealthsimple, a Canadian Robo-advisor (online investment manager with the team of financial experts) company were found in 2014 by Michael Katchen.
In 2017 they established a branch in the United Kingdom and the United States, now more than 175,000+ active users are attached with the worth assets of approximately $5 billion under the management.
The Canadian company is also operating its network from New York(U.S) and London(U.K) with a team of financial Experts/Advisors who are ready to help.
Introduction To Wealthsimple Halal Portfolio Review
It has become challenging to find the right Halal investment opportunities today.
May it be banks, stocks, or bonds, things are escalating like never before, and the investment opportunities for Muslims are transforming more into a western facade.
If you consider yourself an excellent Muslim, then it is essential to do your research before you invest, in other words, if you want to make money in a halal way then commence your venture with the right halal investment medium.
This is where some people start to take notice the needs and opportunity in halal investment, including Wealthsimple.
In 2017, the company introduced the first Halal Investing Portfolio in Canada and they are also front runners in the field of Socially Responsible Investing (SRI) options.
The Halal portfolio is ‘unlikely’ a trending investment portfolio. Halal Wealthsimple contains investment assets that are ‘compliance’ with shariah laws.
The halal investment is structured to wave off your investment and trading fees, easy to rebalance and magnify your returns.
My Wealthsimple halal portfolio review concerns what halal investment and assets are creating the portfolio for their effectiveness, the fee for investment, and the risks of the portfolio.
Knowledge About Halal Investment
Wealthsimple halal investment redirects to those financial products within the boundary of Islamic shariah.
The profit from interest over loans, traditional assets, for example, GICs, or in the shape of bounds are strictly prohibited according to Islamic laws.
The core advantage of halal investment is that it encourages people to invest in a socially responsible way. To invest in companies that earn their profit from interest or lending money for the benefit is against Islamic laws.
Steps To Follow In Signup
Creating an account is as easy as the open account in the Acorns Spare Change Investment app.
You have to follow some simple steps to get your dashboard access; hardly, it takes five minutes.
- Follow the link that will take you to sign up page – you will get a fees-free account for a year under the consideration of $10,000.
- Fill the form with your personal (verified) email and choose your password. (Remember the credentials for feature login once your sign up process is done)
- You are required to answer some questions regarding your financial status and your requirements so that they can suggest relevant portfolio.
- Next, you are ready to go by linking your bank accounts and start investing and manage your wealth.
Note: Wealthsimple halal portfolio/socially responsible investment portfolio doesn’t require a minimum balance to open an account.
However, you can get free financial expert advice/suggestions, dividend re-investing, automatic rebalancing portfolio, low management fee (more economical than many other Robo-services in the market), personalized and diversified portfolio, and automatic deposits base on scheduled investment plan.
There is free funds transfer offer depends on $5,000 or more when you transfer from another bank, Wealthsimple pays on your behalf the fees to your bank or refunds your transfer charges.
Procedure Behind The Halal Portfolio Investment
Wealthsimple embraces the MSCI Islamic index series method to construct the shariah-compliant portfolio which is authenticated by the committee of Islamic scholars.
Wealthsimple halal investment portfolio eliminates those firms that make a profit more than 5% of their income from gambling, alcohol, tobacco, illicit arms production, pornography, interest(debt), you know, all the bad things in Islam.
To check on whether a company carries excessive debt or not. The sum of a firm’s account receivable and cash over its total assets will be calculated as a financial ration. Those firms that have debt ratios exceeding 33.33% are not included.
What Investment Accounts Wealthsimple offers In Halal Portfolio?
Members of Wealthsimple halal portfolio are open to investing in an RRSP, RESP, LIRA, RRIF, TFSA, or non-registered personal, corporate, or joint investment accounts.
How Many Fees Does Wealthsimple Halal Portfolio Charge?
As per standard portfolios, the halal portfolio is not treated as special, or whether you are socially responsible investing or a halal portfolio, the fees you pay are the same. The detail is as under:
- $0 to $99,999: 0.5% per annum
- $100,000+: 0.4% per annum
For the investment over $100,000, Wealthsimple offers extra care by benefiting them tax-loss harvesting, approach to more than 1,000 VIP lounges around the world, and priority pass membership.
What Are The Limitations Of Wealthsimple Halal Portfolio?
As previously mentioned, Wealthsimple halal investment portfolio is a portfolio entirely composed of 50 different shares.
Because bonds are prohibited according to Islamic laws, the fixed income instrument is not included. It means that the profile has a growth risk (i.e. aggressive).
Cash savings and halal portfolio dynamics between them are under attention. Depending on your chosen investment profile, your portfolio investments and cash holdings may look as follow:
- Conservative Investor Offer: Cash holding 65% while Halal portfolio 35%
- Balanced Investor Offer: Cash holding 50% while halal portfolio 50%
- Growth Investor Offer: Cash holding 20% while halal portfolio 80%
Summary of full Wealthsimple Halal Portfolio Review:
In this Wealthsimple halal portfolio review: Wealthsimple’s Halal Portfolio provides easy access to investments for devout Muslims that not only comply with Shariah law, but are also customizable, low-cost, internationally diversified, and optimized for risk-return.
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