Frequently Asked Questions

Wahed Invest considers the security of your personal information to be of the utmost importance and we take several measures to ensure it is kept safe.

Any information you provide on our website is transmitted using secure SSL technology with 256-bit encryption. Where we store sensitive information, such as passwords and bank account numbers, we use strong encryption algorithms similar to those used by the major high-street banks.

We also insist on a minimum password length and require you to use upper case letters, numbers and special characters in your password to make it more secure.

Account security is also your responsibility. You should never share your password with anyone else, or let anyone else have access to your Wahed Invest account.

Yes, your investments will be held with WealthKernel who act as custodian for our customers’ money. They hold your cash and investments separately from their own (ring fenced) in accordance with the FCA’s client asset rules, so even if Wahed Invest went into administration, our creditors would not have a claim to your investments.

Find our custodian terms in the following document: Wahed Invest Terms

Sorry, we are unable to give financial advice. However, we are happy to help you with any questions about our service, whether via e-mail or chat.

Wahed Invest (“Wahed”) is a registered investment advisor that aims to provide an efficient and ethical investment platform. Our digital investment platform, sometimes also called Wahed or Wahed Invest, allows investors from all income brackets to invest their savings ethically and efficiently. Wahed’s corporate and regulatory information can be found in the legal section of our website.

While you may be able to buy the securities suggested by Wahed directly through your broker, you may not be able to get them all at the same time or in a cost-effective and efficient manner. In addition, some brokers may require a high minimum investment to open an account. Wahed also monitors and periodically rebalances your portfolio for no additional cost.

More importantly, you may not be able to open an account in the same seamless manner as you do with Wahed. With Wahed’s proprietary technology, you can open an account online in minutes and get access to global markets.

A minimum investment of £50 is required for you to activate your account and start investing with Wahed.

Clients need to be able to provide a valid address and be at least 18 years of age. You also need a bank account to be able transfer funds in and out of your Wahed account. Unfortunately, we cannot accept U.S. citizens at this time.

If you're signing up from Malaysia or the US, please visit their relevant websites by changing the region from our website's footer.

Requirements to open an account:

- At least 18 years old

- tax-resident

- has a National Insurance number

- permanent UK address

- UK bank account

No, you need to be at least 18 years of age to open an account with Wahed.

All your personal information is safe with us. We implement a variety of advanced data encryption measures to safeguard your data. We will never share your details with any third party without your consent. As your investment advisor, your trust is our most important asset. Please refer to our privacy policy for more details.

For any query or clarification regarding our services, you can reach us at uksupport@wahedinvest.com. We would be more than happy to assist you.

We help you invest your money in globally diversified portfolios. Wahed provides portfolio management services to its clients through the use of our advanced digital platform, which employs financial algorithms derived from Modern Portfolio Theory to create optimal portfolios that are tailored to the needs of our investors. By opting to use our services, you will be entering into an agreement that grants our partner, WealthKernel, the authority to invest and manage your savings

Opening an account is simple.

1. To open an account with Wahed, complete a risk assessment questionnaire
2. We will recommend an optimal portfolio based on the answers you have provided us
3. If you are happy with this portfolio allocation, you will then proceed to complete the required registration forms
4. Transfer funds into your Wahed account and we’ll invest them according to your chosen portfolio

Our platform evaluates an investor's risk profile by asking them a few basic questions about their investment goals, liquidity needs, time horizon, as well as other other assessment topics. Based on this information, we recommend a portfolio with an  optimized combination of securities that may provide the highest potential return subject to the investor’s risk appetite. We use Modern Portfolio Theory to optimize and manage your portfolio at a fraction of the cost of most conventional wealth managers.

Our main objective is to provide a low-cost investment advisory service for any size of portfolio. We allocate a portion of funds into ETFs as they help reduce unnecessary overhead costs while providing efficient diversification benefits. Investing in individual assets involves multiple transactions, which can lead to higher costs.

We will rebalance your portfolio whenever:

• There is a change in your risk profile, which can have a significant impact on your investment goals.
• Whenever funds are added or withdrawn, we rebalance your portfolio to reflect this change.
• When there is a major change in market volatility

We charge a single wrap fee for our service, which is inclusive of management, custodian, and transaction fees.

• £2.99 per month up to £10,000 balance, or
• 0.49% per annum for balances greater than £10,000

You can refer to our pricing page for more information.

This fee does not include any charges on wire transfers or other fees that may be charged by the custodian or your bank.

The ETF sponsors or mutual funds also usually charge expense ratios, which are not  included in the wrap fee. These are extra fees you will pay indirectly (i.e., they are part of the cost of buying these ETF or mutual funds in the portfolio). We always review these fees when we implement our initial rebalancing and we might at times strategically hold certain securities where the trading fees are high relative to the actual value of the position. For more information about our fee structure, please refer to our Client Agreement.

You will be able to monitor your performance daily through the platform. You can also download your monthly statements from your app which will have a summary of your portfolio holdings and performance.

You may close your account by sending us an email at uksupport@wahedinvest.com.

Shari'a-compliant investing is the practice of trading in investments that are reviewed for permissibility according to Islamic financial ethics, laws and industry practices. Generally, this will mean screening out investments in certain conventional business sectors, as well as reviewing such remaining candidates to ensure they meet established asset to debt ratios. For more information on how our team ensures investments are review for Shari'ah-compliant click here.

Wahed screens potential portfolio investment based upon a strict set of constraints in accordance with best-practice Shariah-compliance standards, reviewed by our Shariah supervisory board (SSB). In summary, any portfolio cannot hold investment of any company or fund that:

• Provides conventional financial services and any other related interest-bearing services.
• Manufactures/sells products or services not approved by our SSB (i.e. liquor, tobacco, gambling, adult entertainment, weaponry, etc).
• Does not have a certain percentage of real or physical assets.
• Does not meet certain debt ratios.

In order to display our commitment to best practices in the field of Shariah compliance, we have designated Shariyah Review Bureau, a leading Shari'ah financial advisory firm, as our Shariah advisor. Our Shariah advisor provides the external, independent experts who sit on our SSB and advise Wahed on matters of Shariah-compliance and Islamic financial ethics.

You can see the certificate here.

Some of the funds and investments in your portfolios do pay out dividends, however, the frequency of such disbursement will depend on each fund's policies.

The dividends received on your investments will be automatically reinvested into your Wahed account.

The securities you own are subject to market risk. Fluctuations in market conditions are common, and when markets are down you may bear some loss. To make sure your portfolios are permitted under Islamic financial ethics, we cannot guarantee returns.

Yes, the minimum balance is £50. We permit such a low balance in order to make our service accessible to everyone.

Wahed Invest is a discretionary management  service and therefore investment decisions will be made by your Investment Managers. We do not offer a tailored service in regards to the individual investments.

We use Consumer Price Index (CPI) as a benchmark. We will add this to our website soon.

The minimum investing period is three years however there is no lock in period.

You can take your money out at any time, but you should consider investing to be a long-term affair.

We have entered into an agreement with WealthKernel to provide execution services to you on our behalf.

We have arranged for WealthKernel to provide custody services to you, in accordance with instructions submitted by Wahed Invest on your behalf. You agree to Wahed Invest providing such instructions to WealthKernel on your behalf and acknowledge that such custody services are provided to you by WealthKernel subject to, and in accordance with, the terms set out in section II.

Also note we will pool (aggregate) your transactions with those of other customers without seeking prior agreement from you. We will only do so where we believe that this is unlikely to disadvantage your overall position, although it may do so in relation to any specific order.

For more information on how we execute trades on your behalf, please see our Best Execution Policy, located in the terms and conditions.

We will place trades several times a week.

Wahed Invest Ltd are members of the Financial Services Compensation Scheme which provides customer protection of up to £85,000 per person per firm if Wahed Invest Ltd or your Custodian (WealthKernel) is declared in default.

This doesn’t cover losses incurred through investment performance or if you get back less than you originally invested.

Wahed's portfolio is designed to minimize risk and maximize return. There is no certainty in performance and your annual return will depend on multiple factors including your risk profile and market conditions. More aggressive profiles are expected to earn higher returns on the Wahed platform, but may also experience greater losses depending upon market conditions and the performance of related investments.

To view your portfolio holdings, users can login to the Wahed app and under their Portfolio page, the Positions tab will show the current state of their investments.

All Wahed clients are invested into a globally diversified portfolio of securities. These securities are screened for Shariah-compliance.

What returns can I expect?

Your expected return depends on your risk profile, asset allocation and the related market performance of those portfolio assets. Users with a conservative profile are expected to earn less and be exposed to less risk than users with an aggressive profile, who will be exposed to more risk in exchange for possibility of higher returns.

You can view our portfolios' historical performance on our Investing page.

Please note that historical returns are not an indication or guarantee of future results. Any portfolio investments may gain as well as lose value.

• Risk Warning:

As with any investment, a Wahed Invest Ltd investment puts your money at risk, as the value of your investment can go down as well as up. The tax treatment of your investment will depend on your individual circumstances and may change in the future. If you are unsure about whether investing is right for you, please seek expert financial advice.

Yes. As with all investing, the value of your investments can go up as well as down. We listed the key risks we thought you should be aware of below this FAQ entry.

• Investment Risk

This is the possibility that you could get back less than you invested. As your investment manager, we or anyone else, cannot remove this risk. Our role is to ensure you are adequately compensated for taking this risk: by keeping your costs low, diversifying your investments so you aren’t affected by a specific company event, and allocating you to an optimal mix of asset classes. This process is known as optimizing your risk-to-return profile.

Why does it matter? Your ability to be a successful investor will be largely driven by your ability to understand this unavoidable risk and to deal with it appropriately. This is where we can help.

• Time horizon risk

Early and unforeseen withdrawals could negatively impact your investment returns. Time has a buffering effect on investment risk: the longer you hold an investment, the lower your chances of losing money. Remaining focused on the long-term avoids being penalized by negative short- and medium-term market moves. You should have a minimum of a three-year time horizon.

Why does it matter? This is a key difference with a regular savings account where time isn’t a concern.

• Underperformance risk

The risk of getting a lower return on your investments than average in a good market environment. This comes as a result of investing in lower-risk investment products.

Why does it matter? This is the trade-off between our service and a more traditional investment proposition. Because we start you off with a safer investment product and gradually increase your investment to a riskier product, your average return in a good environment will be dampened.

You can read the details of each of the funds your money is invested in on the following fund factsheets. Please note, your selected model will dictate which funds you are invested in.

Very Conservative

Franklin Global Sukuk USD W Dis

Moderately Conservative / Conservative / Moderately Aggressive / Aggressive

Franklin Global Sukuk USD W Dis

iShares MSCI World Islamic ETF Dist (USD)

HSBC Islamic Global Equity Index IC

iShares MSCI EM Islamic ETF Dist (USD)

The Royal Mint Physical Gold ETC (USD)

Very Aggressive

iShares MSCI World Islamic ETF Dist (USD)

HSBC Islamic Global Equity Index IC

iShares MSCI EM Islamic ETF Dist (USD)

The funds we invest in pay out dividends, however the frequency will depend on each fund's policies.

The dividends you receive will be automatically reinvested into your Wahed account

If you wish to change your portfolio, here's how you can do it:

• Login to the app and go the main menu
• Go to your Account Details screen
• Under 'My investment account' tap on your account type
• Tap on 'Change my portfolio' at the bottom of the screen

You can only change your portfolio once every six months.

• Understanding your percentage of return
  
  Although there are multiple ways to calculate returns for any investment, in order to account for time and deposits, most investors ultimately simply want to see how much money they currently have versus how much they started with.
  
  The approach that we use to calculate such return percentages is the Time Weighted Return (TWR) approach. You should think of TWR as the return your portfolio generated assuming all your deposits were made on the first day your account was opened. This calculation method eliminates the effects of your deposits and withdrawals, and instead looks at the portfolio performance itself, with each day weighted equally regardless of whether the account has £100 or £1,000,000.
  
  This is not the same as dividing the total gains or losses by the initial portfolio value, which is the simple percentage return. Check out the bottom of this article to see why the simple percentage approach may be misleading, particularly when taking deposits and withdrawals into consideration
  
  Now that you understand what this number is, it’s important to note how your deposits and withdrawals affect the relationship between your total earnings and your TWR.

‍

• How your earnings may be positive but your TWR could be negative
  
  Because you might have deposits and withdrawals on different dates, showing you a simple percentage return might not be sufficient. The example below will explain:
  
  Let’s say Sarah made a £2,000 deposit, and her portfolio dropped by 50% so she’s left with £1,000. Then, Sarah makes a £30,000 deposit so her portfolio balance goes to £31,000. Soon after, the market rallies and her portfolio grows by 10% to become £34,100 (£31,000 + £3,100).
  
  Overall, Sarah has £2,100 in gains for her portfolio (she lost -£1,000 then made +£3,100).
  
  However, if you consider the actual percentage returns for each period, the portfolio was down 50%, then gained 10%. Using simple compounding according to the TWR method, her portfolio has a TWR of (((1-50%) x (1+10%))-1) = -45%. Note that because of the timing of her deposits, she has positive gains but negative TWR.

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• Negative earnings but positive TWR
  
  The same dichotomy can be seen if the scenario was reversed.
  
  First, Sarah’s £2,000 deposit grew by 50% to £3,000, then she deposited £30,000. Her new balance is now £33,000 (£2,000 + £1,000 + £30,000)
  
  Her portfolio then lost -10% (£3,300) so she now has £29,700.
  
  Overall, she lost -£2,300 (made £1,000 then lost £3,300).
  
  However, her portfolio actually performed well from a daily return perspective, growing by 50%, and then dropping by 10%.
  
  This is why we use the TWR method; it captures the real performance of your portfolio, weighting each period equally regardless of market value, and eliminating the effects of deposits and withdrawals.

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• Why we don’t use the simple percentage return, and how it can be misleading
  
  The simple percentage return is calculated by dividing your earnings by your net deposits.
  
  So for example, if your net deposits are £5,000 and you earned £1,000 your percentage earnings will be:
  
  £1,000 / £5,000 = 20%
  
  Now let’s say you decide to go on a trip, so you withdraw £3,000, and your balance becomes £2,000.
  
  The simple percentage return would now be:
  
  £1,000 / £2,000 = 50%
  
  You can see why this number can be quite misleading because technically this hypothetical portfolio did not ‘grow’ by 50%.

When creating a password during sign up, please ensure that the following conditions

are met:

• Length is at least 8 characters
• Must contain both an uppercase and lowercase letter ('A' and 'a' or 'B' and 'b')
• Must contain a number (any number from 0 to 9)
• Must contain a special character such as !,@,#,$,%,^,&,*

Wahed’s Wrap Fee is inclusive of all management fees, custodian fees, and transaction fees. Your bank may charge you for any wiring or withdrawal fees.

No, you will never be charged for an account with a £0 balance.

Fees are charged monthly. You will never be charged for having an open account with a $0 balance. Kindly refer to the Pricing tab to know more.

Fees are taken from your Wahed account. No action is required on your part.

You will never be put in a more expensive fee tier due to market changes. You can, however, get placed into a less expensive fee tier due to upward market changes.

Yes, you can request to close your Wahed account at any time. There are no account closure charges.

You can set up a standing order anytime from your Wahed app. Your Wahed mobile application and your device's operating system must be up-to-date.

Kindly set up your first payment date 10 days from the time you’re setting it up and ensure that it falls on either Tuesday, Wednesday or Thursday. This is to avoid any errors most of our clients have encountered due to some bank provider's restrictions.

Should you require challenges in setting up your recurring deposit, you can email our team at uksupport@wahedinvest.com.

Transferring an ISA usually takes 4-6 weeks.

Firstly open a stocks and shares account on the app but do not fund it.Complete the form

here and send us the signed form to uksupport@wahedinvest.com

If you have already opened an ISA portfolio and would like transfer in your ISA then please fill in this form and send it to uksupport@wahedinvest.com.

No, not at all. You can withdraw your money at any time with no penalties or charges to pay.  Withdrawals takes average 10 working days to be sent to your nominated bank account.

You can transfer your ISA from your current provider to Wahed at any time. We currently offer Stocks and Shares ISAs.

To complete an ISA transfer, simply fill in this form and send it to uksupport@wahedinvest.com.

Please note:

• Kindly ensure that you have opened your ISA with Wahed (so that we can transfer the funds in)
• To protect the tax-free status of your money,kindly do not withdraw.

If you have any queries regarding ISA transfer feel free to reach out to us at 08081696662 or email us at uksupport@wahedinvest.com.

Please login to your Wahed account > Click on Funding > Add Funds > Fill the amount you wish to deposit.

You will be able to Add Funds via the app from your nominated bank account directly.

You will be able to set up a standing order via the App

To withdraw funds, you must log in to your Wahed APP and simply follow the instructions.

This is a step-by-step guide:

Click on > Withdraw Funds > Fill in the amount you wish to withdraw > Confirm the transaction.

You can only withdraw funds through bank transfers. To request another method kindly email us at uksupport@wahedinvest.com.

Your bank may charge you for transfers, this fee does not go to Wahed. Please check with your bank.

No, Wahed does not charge you for withdrawals.

Deposits are posted within 1-2 business days from the time it is debited from your bank account. Once we receive your funds, it is then invested the same day or the next, depending on the time they were received. The funds will first reflect as cash in your account. Once the trades are placed you will see funds start to appear in your holdings list after the next trading day from when your cash has arrived.

No, there is no lockup period. You can request to withdraw all your funds at any time.

However, the withdrawal process can take 10 working days depending on the date of your withdrawal and bank. This is mainly due to a period for clearing and settlement of trades once your withdrawal request has been processed.

The timing of a withdrawal depends on several factors, including what time of day a withdrawal request is made, and the institution receiving your funds.

Withdrawals can take up to 10 working days before the requested funds are in your bank account. This is mainly due to the time it takes for trades to be cleared and settled.

No, you may only transfer funds from an account that bears your name. You will have to first link your bank account to your Wahed app before you can initiate a deposit.

No, you may only withdraw funds to an account that bears your name.

No, we only accept funds in Pound Sterling as cash deposits.

If you invest less than the minimum amount of £50, the account status will be “Active (Insufficient Funds).”

There will be no trades or securities allocated until you fund at least £50 into your Wahed account.

If the Portfolio Value falls below £50 due to market changes, then the account status will remain Active.

However, if the Portfolio Value falls below £50 due to withdrawals from the account, the account status will be changed to Insufficient Funds and you will need to fund your account.

This service is currently not available. We accept funds from your bank or broker through wire transfers

However, we are looking to have this option available in the future.

We only accept funds in Pound Sterling.

In case of any queries or concerns regarding your account, you may reach us via email at uksupport@wahedinvest.com. We will get back to you at our earliest.

No, we only accept funds in Pound Sterling as cash deposits.

No, not at the moment, but we are planning to in the future, so watch this space.

Upon receipt of certified proof of death, the assets you hold would be frozen. The investments you hold would remain static, though we may need to sell down some of your assets to recover any fees owed to us, due diligence is undertaken, then the client's assets will be sold and paid into your estate through your Executor. The Executor would then execute his duties in line with the Last Will and Testament and forward onto your beneficiary.

ISA Plans have an annual investment limit (currently £20,000 for the 2019 to 2020 tax year).

No, we don’t run a credit check.

We ask you for some personal information, such as your bank details and we will use credit reference agency searches to help verify your identity.

The searches will leave a footprint on your file, but do not affect your credit score. When you apply, we will also ask you some questions to check that the level of risk you are choosing to take is appropriate for you. We do this because we’re committed to being responsible providers.

Unfortunately, we are not able to accept U.S. Citizens due to the U.S. Government’s tax reporting rules. This includes anyone holding a U.S. passport or anyone who has an obligation to pay tax to the U.S. tax authorities.

Our aim is to provide you with excellent service at all times. If you are unhappy with our service and wish to make a complaint, you can contact us using the form below.

We will acknowledge your complaint within five working days, then investigate the circumstances and report the results back to you in due course.

If you feel that we are not dealing with your complaint satisfactorily, you can refer your complaint to the Financial Ombudsman Service. Their address is Exchange Tower, London E14 9SR.

Our complaints policy is in our terms here.

Individual Savings Accounts (known as ISAs) hold the same investments as a Regular Plan, but you keep more of the returns for yourself as there is no UK tax to pay.

You can open an ISA with us if you:

• Are over 18
• Are a UK tax resident
• Have not funded an Investment ISA (other than a Lifetime ISA) with another provider since 6th April this year.

The Government currently lets you put up to £20,000 a year in a Cash ISA, Innovative Finance ISA or Investment ISA (as well as up to £4,000 in a Lifetime ISA within the £20,000 limit), or you can split your allowance between them. Please note, we only offer Stocks and Shares ISAs. You can only pay into one Stocks and shares ISA in each tax year, but you can open a new ISA with a different provider each year if you want to.

Yes, the minimum balance is £50. We strive to provide such a low balance in order to make our service accessible to everyone.

All customers have access to our customer support team that will happily answer any questions regarding your account. However, we cannot alter anything with you over the telephone or in-person regarding your investments or your recommended allocation – this can only be done through the Wahed App. Furthermore, we cannot provide any financial advice or planning through our customer support team.

We calculate partial sales using the First In First Out method (FIFO method). This is the default accounting method in the US. It presumes that you’re selling the oldest shares first.

For example:

You buy 100 shares of a stock for $50 each, and a year later buy 100 more at $60 each. By the next year, when the stock is trading at $80 each, you sell 50 shares. In this example, as per the FIFO method, it would mean selling your $50 shares first, resulting in a capital gain of $30 per share, or $1,500 in total.

Your gains or losses will be reflected daily in your account.

Yes, you can open multiple accounts all from one dashboard.

Once your first account is active and funded, you'll see a button on the dashboard that allows you to add new accounts under that same email.

Login to your Wahed app and under Activity, tap on Transactions.

Wahed Invest services are only available to accounts opened through Wahed. In order to provide our services, Wahed Invest must have the ability to electronically place trades for all of its accounts.

We do not currently offer any tax planning advice or services.

Yes. As your financial situation changes, it is important to keep us informed so we can determine whether to update our investment recommendations for you. Keeping your information up-to-date (e.g. address, name change, employment information) ensures we are providing the most relevant and personalized financial recommendations for your current financial situation.

Yes, it is important to keep your information up-to-date. Keeping your information up-to-date (e.g. address, name change, employment information) ensures we are providing the most relevant and personalized financial recommendations for your current financial situation.

Our aim is to make halal investing accessible.

Getting started with Wahed is simple, watch this video to see how you can put your money to work! Watch the video