Crafting Your Investment Strategy: A Guide for Halal Investors
Creating a successful investment strategy is about more than just picking stocks or funds—it's about understanding your financial goals, assessing your risk tolerance, and determining your time horizon. At Wahed, we recognize the importance of aligning your investments with your values and your life stage, ensuring that every decision you make is informed and purposeful.
Understanding Your Investment Objectives
Growth - For younger investors focused on maximizing returns, growth should be the primary objective. If you're just starting your investment journey and have the luxury of time on your side, Wahed’s Very Aggressive Portfolio is designed to help you achieve significant growth. Fully invested in equities, this portfolio offers the highest potential returns, making it ideal for those who are comfortable navigating the market's ups and downs over a longer period.
Income - As you approach retirement, your investment objectives often shift from growth to income generation and capital preservation. For investors who seek steady income with a focus on maintaining their wealth, Wahed’s Conservative Portfolio is an excellent choice. Composed primarily of sukuk with a minor allocation to equities, this portfolio is designed for modest growth and stability, providing a reliable income stream while protecting your capital.
Capital Preservation - For those who are close to reaching their financial goals, preserving the wealth you've accumulated becomes a top priority. Wahed’s Very Conservative Portfolio is tailored to offer maximum stability, with a heavy allocation to sukuk. This portfolio minimizes exposure to market volatility, ensuring that your savings remain protected as you approach the end of your investment journey.
Assessing Your Risk Tolerance
Understanding and assessing your risk tolerance is a critical step in developing a sound investment strategy. Younger investors, who typically have a longer time horizon, can afford to take on more risk. This allows them to pursue higher returns by investing in more volatile assets like equities. On the other hand, older investors or those nearing their financial goals may prefer a more conservative approach, focusing on preserving their capital rather than maximizing returns.
At Wahed, we help you identify your risk tolerance during our onboarding process, ensuring that your investment strategy aligns with your comfort level and financial goals.
Determining Your Time Horizon
Your time horizon—the length of time you plan to hold your investments before you need to access the funds—plays a crucial role in shaping your investment strategy. If you have a longer time horizon, you can afford to adopt a more aggressive approach, focusing on growth-oriented investments that have the potential to deliver higher returns over time. Conversely, if your time horizon is shorter, a more conservative strategy that prioritizes stability and capital preservation is advisable.
Wahed's portfolios are designed to align with various time horizons, helping you to strike the right balance between risk and reward as you work towards your financial objectives.
How Wahed Streamlines the Process
We understand that choosing the right investment strategy can be overwhelming, especially when you’re trying to balance your financial goals with your values. That’s why Wahed’s onboarding process is designed to make this decision easier for you. By asking targeted questions about your risk tolerance, time horizon, and investment objectives, we recommend a portfolio that is tailored to your unique needs. This personalized approach ensures that you don’t have to stress about finding the best strategy on your own—Wahed is here to guide you every step of the way.
Ready to Execute Your Investment Strategy?
At Wahed, we’re committed to helping you achieve your financial goals in a way that aligns with your faith. Explore our diversified portfolios today and take the first step towards building a secure and prosperous future. With the right strategy in place, your financial journey can be both successful and in harmony with your values.
Risk Warning: Equity investments are not readily realisable and involve risks, including loss of capital, illiquidity, lack of dividends and dilution, and it should be done only as part of a diversified portfolio. Investments of this type are only for investors who understand these risks. You will only be able to invest in the company once you have met our conditions for becoming a registered member.
Please visit www.wahed.com/uk/ventures/risk for our full risk warning.
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.
Please visit www.wahed.com for our full terms and conditions
Maydan Capital Limited, trading as WahedX, is registered in England and Wales (Company No. 13451691), registered office: 87-89 Baker Street, London, W1U 6RJ, UK. Maydan Capital Ltd (FRN: 963613) is an appointed representative of Wahed Invest Ltd (FRN: 833225), an authorised and regulated firm by the Financial Conduct Authority.Wahed Invest Ltd. is registered in England and Wales (Company No. 10829012), registered office: 87-89 Baker Street, London, W1U 6RJ, UK and is authorised and regulated by the Financial Conduct Authority: FRN 833225.
Subscribe For More Islamic Finance Content
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.
Wahed Invest LLC (Wahed) is a US Securities and Exchange Commission (SEC) registered investment advisor. Wahed Invest provides brokerage services to its clients through its brokerage partner Apex Clearing Corporation, a member of NYSE - FINRA - SIPC and regulated by the SEC and the Commodity Futures Trading Commission. Registration does not imply a certain level of skill or training. Wahed does not intend to offer or solicit anyone to buy or sell securities in jurisdictions where Wahed is not registered or a region where an investment practice like this would be contrary to the laws or regulations. Any returns generated in the past do not guarantee future returns. All securities involve some risk and may result in loss. Any performance displayed in the advertisements or graphics on this site are for illustrative performances only.
Disclaimer: Wahed Technologies Sdn Bhd ("Wahed") is a Digital Investment Manager (DIM) licensee issued by Securities Commission Malaysia (eCMSL/ A0359/2019). It is part of Wahed Inc. Wahed is authorized to conduct a fund management business that incorporates innovative technologies into automated portfolio management services offered to clients under a license issued pursuant to Schedule 2 of the Capital Markets Services Act 2007. All investments involve risks, including the possibility of losing the money you invest, and the track record does not guarantee future performance. The history of returns, expected returns, and probability projections is provided for informational and illustrative purposes, and may not reflect actual future performance. Wahed is not responsible for liability for your trading and investment decisions. It should not be assumed that the methods, techniques, or indicators presented in this product will be profitable, or will not result in losses. The previous results of any trading system published by Wahed, through the Website or otherwise, do not indicate future returns by that system, and do not indicate future returns that will be realized by you.
Wahed Invest Limited is regulated by ADGM’s Financial Services Regulatory Authority (“FSRA”) as an Islamic Financial Business with Financial Services Permission for Shari’a Compliant Regulated Activities of Managing Assets and Arranging Custody [Financial Permission No. 220065]. Our ADGM Registered No. is 000004971. Wahed Invest Limited utilises Abu Dhabi Commercial Bank as its banking partner/custodian
Wahed assumes no obligation to provide notifications of changes in any factors that could affect the information provided. This information should not be relied upon by the reader as research or investment advice regarding any issuer or security in particular. Any strategies discussed are strictly for illustrative and educational purposes and should not be construed as a recommendation to purchase or sell, or an offer to sell or a solicitation of an offer to buy any security. Furthermore, the information presented may not take into consideration commissions, tax implications, or other transactional costs, which may significantly affect the economic consequences of a given strategy or investment decision. This information is not intended as a recommendation to invest in any particular asset class or strategy or as a promise of future performance.
There is no guarantee that any investment strategy will work under all market conditions or is suitable for all investors. Each investor should evaluate their ability to invest long term, especially during periods of downturn in the market. Investors should not substitute these materials for professional services and should seek advice from an independent advisor before acting on any information presented. Any links to third-party websites are provided strictly as a courtesy. We make no representation as to the completeness or accuracy of information provided at these websites nor do we endorse the content and information contained on those sites. When you access one of these websites, you are leaving our website and assume total responsibility and risk for your use of the third-party websites.
